All Terms Confidential

Transaction Description:

George Smith Partners arranged $47,500,000 in construction financing for the development of a single-family build-to-rent community in La Quinta, within Southern California’s Coachella Valley on behalf of Shopoff Realty Investments. Spanning 18 acres, the Project features 131 units, averaging approximately 2,000 SF per unit. The Sponsor completed entitlements on the infill site over the last few years and secured the financing to commence construction.

Build-to-rent communities have gained significant traction due to, on average, high absorption rates and attractive rental premiums over comparative products. Demand has grown significantly, making it the fastest growing asset class in the U.S. housing market. The Sponsor, a best-in-class developer based in Southern California, recognized the opportunity to capitalize on the booming asset class. GSP was able to identify a lender who understood the investment potential of the high-growth submarket, as well as the Sponsor’s strong local knowledge and expertise in the BTR industry.

Rate: SOFR + 2.35%
Term: 42 Months + 12 Month Extension
Loan-To-Cost: 65%
Stabilized Loan-To-Value: 60%
Guaranty: 50% recourse

Transaction Description:

George Smith Partners placed a $40,270,000 recourse, senior construction loan for a ground-up development in Meridian, Idaho.
Upon completion, the Project will bring 240 multifamily units to the market through a mid-rise property consisting of 10 three-story residential buildings and a clubhouse situated on the 11.22-acre site. The Subject will include a mix of one, two, and three-bedroom units ranging up to 1,150 SF. During marketing, analysis showed the population within the subject neighborhood has had consistent growth over the past 20 years, with more projected in the coming five years. As a benefactor of the substantial in-migration from the larger West Coast metropolitan cities, the neighborhood currently has an above average income profile, and the Project improves the encompassing neighborhood infrastructure and support services. GSP cultivated a relationship with a national lender who provided the financing execution.

Advisors

Matthew Kirisits Director

Rate: 3.60%
Term: 5 Years
Amortization: 30 Years
Prepayment: 3%, 1%, 0%, 0%, 0%

Transaction Description:

George Smith Partners secured a $3,060,000 loan for the acquisition of a 114-unit multifamily property located in Oklahoma City, OK. To meet the sellers 60-day closing requirement, GSP used its relationship with a lender we had closed multiple loans with. This lender recently closed a similar loan in this market which allowed them to feel comfortable with the market characteristics. Although the Property is currently over 90% leased, rents were below market because the Seller self-managed and the Property needs exterior and interior improvements. The Sponsor wanted to lock in a low rate to allow for more cash flow to be used towards their value-add strategy. This was cheaper and more efficient than a traditional bridge loan. During the close of this loan, GSP was simultaneously helping the Sponsor purchase the Property directly next door. The long-term business plan is to combine both properties to become one property within 2 years. The loan represents 70% of the purchase price and was structured as a fixed rate 5-year term, with the first-year interest-only. The interest-only period allows for more property cash flow to be used towards building improvements. Additional flexibility is also provided with a prepayment equal to 3-1-0-0-0. The prepayment flexibility will allow the Sponsor to cash-out refinance once they have implemented their value-add strategy.