Interest Rate: SOFR + 4.14% (SOFR floor of 0.10%)
Term: 3+1+1
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully arranged $53,710,000 in bridge financing for a six-property portfolio comprising three conventional multifamily properties and three co-living properties totaling 113 units (278 beds) in Los Angeles. All six of the properties are in various stages of lease-up. The non-recourse bridge financing refinanced existing construction debt from four unrelated lenders, provided a significant cash out to the Sponsor and allows more time for continued rent recovery in Los Angeles, in anticipation of permanent long-term financing.
The Properties are in highly dense submarkets with significant levels of rentership, with vacancies approaching 3%. The housing crisis in Los Angeles has yielded significant pent-up demand for attainable housing options. The best-in-class Sponsor recognized the substantial value of the high quality multifamily and co-living properties in strong growth submarkets where demand has consistently outweighed supply, especially for new product. GSP was able to identify a lender who was able to get comfortable with the business plan due the Sponsors familiarity with the markets and demonstrated success with both conventional and co-living properties.

Rate: 3.15% (Fixed for 7 Years)
Term: 30 Years
LTV: 60%
DCR: 1.20

Transaction Description:

George Smith Partners arranged $3,870,000 in cash-out permanent financing for the refinance of a 44-unit multifamily property located in Los Angeles, CA. GSP was able to time the refinance of the more expensive lender and lock the rate before the interest rate market started to move upwards. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 10-year term, and the first 7 years being fixed at an incredibly low rate. The flexible prepayment structure is equal to 2% for the first 2 years, 1% for years 3 and 4, and 0% thereafter. The loan structure allows the Sponsor to refinance out of an expensive loan with a fixed rate of 3.15%, while also receiving cash out. The Sponsor is using cash-out proceeds to continue their business plan of purchasing and renovating additional properties.

Rate: 6.40%
Term: 18 months
LTC: 60%
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully arranged $3,000,000 in acquisition financing for a 20,000 SF office/retail single story building in Sacramento. The Seller will occupy the Property paying no rent but will cover the operating expenses until the client provides 90 days’ notice to vacate. Centrally located in Midtown Sacramento, the Sponsor purchased the property for its land value, as they will entitle and assemble adjacent properties to be developed into a new ground-up multifamily project. Requiring a three-week closing timeline over the holiday season, George Smith Partners successfully sourced financing within the tight schedule.