FINfacts™ XXIV – No. 350 | January 4, 2023

MARKET RATES
Prime Rate 7.50%
1 Month LIBOR 4.40%
6 Month LIBOR 5.13%
5 Yr SOFR Swap 3.58%
10 Yr SOFR Swap 3.36%
5 Yr US Treasury 3.85%
10 Yr US Treasury 3.69%
30 Yr US Treasury 3.81%

RECENT TRANSACTIONS
$10,975,000 Bridge Financing for 5 Parcel Land Portfolio; Los Angeles, CA

Rate: 8.60% Fixed
Term: 12 Months with One 6-Month Extension Option
Amortization: Interest Only
Origination Fee: 1.00%
Exit Fee: None
Prepayment: Open
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners arranged $10,975,000 of financing for the non-recourse refinance of a 5-property portfolio of land parcels in various infill locations in Los Angeles, CA. Most of the land is not fully entitled and is in the pre-development process for multi-family ground-up development. The Sponsor needed a lender that could provide structure for the different ownerships and allow for release provisions as the properties become ready for construction.

GSP accomplished the Sponsor’s goal of providing liquidity for potential acquisitions with debt that was also pre-payable at any time. GSP was able to identify a lending source that understood the market and demand for multifamily development in these locations.

Advisors

Steve Bram
Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Vice President
Allison Higgins
Senior Vice President
Nick Rogers
Vice President

$3,830,000 Refinance of a 11-Unit Multifamily Property; Los Angeles, CA

Rate: 3.50%
Term: 10 Years
LTV: 70%
Prepayment: 5, 4, 3, 2, 1%

Transaction Description:

George Smith Partners arranged $3,830,000 in permanent financing on a newly stabilized 11-unit multifamily property located in Austin, TX. The loan is fixed at a rate of 6.00% for 10 years and a 3-3-3-2-1 prepayment structure. Although some lenders were hesitant to provide competitive permanent financing terms on a former condo multifamily property with less than a year of operating history, GSP was able to source competitive financing ahead of the rising interest rate environment with flexible prepayment. Thanks to our long-standing relationship with this repeat lending relationship, GSP was able to meet the Sponsor’s deadline and close this transaction within 43 days from signing the term sheet.

Advisors

Shahin Yazdi
Managing Director & Chief Operating Officer, AXCS Capital
Alda Mostofi
Senior Vice President
Matthew Kirisits
Vice President
Dasha Savchenko
Vice President

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HOT MONEY
Quick Close, Special-Use Asset Bridge Financing

George Smith Partners is working with a capital provider financing first-lien bridge loans from $2,000,000 – $50,000,000. The program is non-recourse and covers all asset types including hospitality(Motel 6) and industrial. The lender is also active with special use assets such as marinas. With leverage up to 75%, rates start at SOFR + 5.50%. This lender can close in as quickly as 21 days and is active across 42 states.

More Hot Money ›

If you have an inquiry regarding George Smith Partners’ commercial real estate financing, please contact your GSP representative or Jessica Mania, at (310) 867-2974 or jmania@gspartners.com


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