FINfacts™ XXIV – No. 314 | April 20, 2022

MARKET RATES
Prime Rate 3.50%
1 Month LIBOR 0.62%
6 Month LIBOR 1.61%
5 Yr SOFR Swap 2.67%
10 Yr SOFR Swap 2.67%
5 Yr US Treasury 2.87%
10 Yr US Treasury 2.85%
30 Yr US Treasury 3.01%

RECENT TRANSACTIONS
$67,000,000 Construction Financing for the Development of a Mixed-Use Project; Garden City, ID

Rate: Libor + 700 bps
Term: 30 months
LTC: 85%
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully arranged $67,000,000 ($286,324/unit) in non-recourse, construction financing for a 234-unit, mixed-use development in Garden City, ID. This mixed-use development will sit on the edge of the Boise River Greenbelt with stunning views overlooking the water, Boise city and the surrounding mountains. The Project will feature eight retail establishments including a public pub and over 16,000 square feet of open public plaza gathering space. The Project will provide much needed housing to the supply constrained Boise MSA that has seen double digit rent growth in the last few years.

This mid-construction Project had the horizontal construction work completed. GSP was brought in to secure a debt provider to help recapitalize the Project and to see it through completion. With the recent financings in Boise that GSP had worked on, GSP put together a bespoke marketing process. The Project received a tremendous amount of interest from lenders and was put under application in just 7 days! GSP was able to identify a capital partner that provided the best overall value for the Sponsor with competitive pricing, familiarity with the submarket, comfort with the product type, and a closing timeline matching the Sponsor’s needs. The construction loan closed in mid-April providing the necessary financing to bring this Project to fruition. This Project is expected to begin lease up in the second half of 2023.

Advisors

Gary E. Mozer
Managing Director & Principal
Evan Kinne
Managing Director & President, AXCS Capital
Ed Steffelin
Managing Director & Chief Investment Officer, AXCS Investments
Jonathan Lee
Managing Director & President, AXCS Advisors
Shahin Yazdi
Managing Director & Chief Operating Officer, AXCS Capital
Miles Musalman
Senior Vice President
Portrait Blair Lewis
Vice President

$2,083,000 Cash-Out Refinance of a 44 Unit-Multifamily Property; Dallas-Fort Worth, TX

Rate: 3.38%
Term: 7 Years
LTV: 65%
Amortization: 30 Years
Prepayment: 5%, 5%, 4%, 4%, 3%, 2%, 1%

Transaction Description:

George Smith Partners secured a $2,083,000 agency loan for the cash-out refinance of a stabilized 44-unit multifamily property located in Dallas-Fort Worth, TX. GSP used its relationship with a capital provider whom we had closed multiple loans with. This lender recently closed a similar loan in this market. They understood the market and felt comfortable with the market characteristics. The Sponsor recently completed exterior and interior renovations including common area upgrades. 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 7-year term and a flexible prepayment structure equal to 5%, 5%, 4%, 4%, 3%, 2%, 1%. The loan structure allows the Sponsor to refinance out of an expensive loan with a fixed rate of 3.38%, while also receiving cash out. The Sponsor is using cash-out proceeds to continue their business plan of purchasing and renovating additional properties. Thanks to our long-standing relationship with this Lender, GSP was able to meet the Sponsors deadline and close this transaction within 60 days from signing the term sheet.

Advisors

Bryan Shaffer
Managing Director & Principal
Ruben Bohbot
Vice President

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HOT MONEY
Multifamily Permanent Financing 3.90% Fixed for Five Years

George Smith Partners is working with a capital provider funding non-recourse permanent debt to 75% of value on stabilized assets. With a strong appetite for Multifamily, Industrial, Self-Storage and Mixed-Use properties the Lender offers fixed rates starting at 3.90% for 5 and 7-year loans in ten states including California, Arizona, Colorado, Idaho for loans to $25,000,000. Ten-year fixed rate funds are available at a slightly higher coupon. Interest-only options are available along with aggressive underwriting down to a 1.15x DSCR on actual mortgage constants.

More Hot Money ›

If you have an inquiry regarding George Smith Partners’ commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer at (310) 867-2995 or taugust@gspartners.com


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