Loan-To-Cost: 75%
Stabilized Loan-To-Value: 70%
Term: 24 Months + 6 Month Extension
Amortization: Interest-Only
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners placed a $37,500,000 non-recourse, stretch senior construction loan for a 7-story ground-up development of a mixed-use OpZone Project. When complete, the Project will consist of 151 apartment units (including 14 Live/Work Lofts), approximately 15,000 sf of restaurant space, 10,000 sf of retail, and 12,000 sf of office space. The average apartment size is 730 sf, and most units will have private balconies with unobstructed views of the desert and city.

As the Project is a first of its kind in the surrounding area, finding appropriate comparable projects that would speak to the strength of this market proved to be a challenge. GSP focused on the Project as a marquee development and detailed the new employment opportunities from Google, and a hospital expansion, sports training facility, along with the emerging renaissance happening within the downtown area. GSP was able to demonstrate the immense intrinsic value from the ongoing renovation of the City Hall Plaza and Events Center — a 500-seat canopied amphitheater and 60,000 sf of programmable deck area for hosting community events — that sits directly across from the Project. GSP also worked through the Sponsor’s GMP budget with the Lender during a period of escalating cost, showcasing the strength of the Sponsor group in their local market. In turn, this created a comfort level needed by the Lender with regards to the commercial space of the Project.

GSP executed a broad and in-depth marketing campaign to help capital markets understand the opportunity appropriately. These efforts resulted in a successful close with proceeds achieving the Sponsorship’s objective.

Advisors

Matthew Kirisits Director

All Terms Confidential

Transaction Description:

George Smith Partners successfully arranged $15,400,000 in note-on-note financing for a newly constructed Class-A, self-storage facility in a major Southwest metropolitan market. The financing was obtained for a prominent national debt fund and proved extremely accretive, due to an attractive advance rate and pricing. GSP leveraged its extensive lending network and was able to identify a premier note-on-note lender with an extensive book of business in both the note-on-note space and credit facility space. The note-on-note Lender understood the strength of the debt fund platform it was financing and the strong underlying loan. The financing has the potential to grow into a larger credit facility for the debt fund and A-Note lender over time.

Rate: 7.25%
Amortization: Interest-Only
Term: 1 Year + Two 6-Month extensions
LTC: 75%

Transaction Description:

George Smith Partners secured $3,700,000 for an acquisition of a multifamily property in Oklahoma City, OK. The Sponsor had the opportunity to purchase a well-located, value-add property in Oklahoma City. By utilizing a quick close loan, the Sponsor was able to negotiate a below market price. The Sponsor approached GSP to help arrange a loan that needed to close on a strict timeline of only one week. Because of the quick timing and the short-term distress in the cash flow, the Property would not qualify for bank or agency financing. The Property rents were below market because the Seller self-managed and the Property needs exterior and interior improvements. The loan was structured with a CapEx holdback to allow the Sponsor to implement their value-add strategy. The non-recourse facility represents 75% of total cost and was priced at an interest-only fixed rate of 7.25% with a 12-month term plus two 6-month extension options. The interest-only loan allows for more property cash flow to be used towards improving the Property. Thanks to GSP’s long-standing relationship with this debt fund, we were able to close this transaction in less than 7 days from signing the term sheet.