FINfacts™ XXIV – No. 358 | March 2, 2023

Prime Rate 7.75%
1 Month LIBOR 4.67%
6 Month LIBOR 5.28%
5 Yr SOFR Swap 4.15%
10 Yr SOFR Swap 3.81%
5 Yr US Treasury 4.32%
10 Yr US Treasury 4.07%
30 Yr US Treasury 4.03%

$9,000,000 Bridge Financing for 100,000 SF Single Tenant Office; Inland Empire, CA

Rate: 10.50% Fixed for Year 1, then Floating over SOFR for Year 2
LTV: 65%
Term: 10 Years
Amortization: Interest Only
Yield Maintenance: 6 Months Minimum Interest, then Open
Origination Fee: 1%
Prepayment: Open
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners arranged $9,000,000 in bridge financing to refinance a single-tenant office property in the Inland Empire. The Property has been nearly 100% leased to a county entity for 20 years, with lease renewals every 5-7 years. The Sponsor is leaving the unused space vacant in order to attract a single-tenant government lease buyer. GSP had arranged CMBS financing on the property in 2012 that came due in late 2022. Due to the timing in getting a new lease executed, the Sponsor asked for and received a short extension from the lender/servicer. GSP sourced a bridge lender that was poised to fund upon execution of the lease and estoppel. The loan paid off the existing loan and provided funds for tenant improvements mandated in the lease extension. It also gives the Sponsor maximum flexibility to sell or refinance over the next 2 years.


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

Fixed Rate Bridge Financing up to 80% of Purchase Price

George Smith Partners has identified a capital provider financing fixed rate bridge loans for value-add multifamily acquisitions with proceeds up to 80% of purchase price and 100% of renovation costs and/or tenant improvements. Loan amounts range from $2,000,000 – $25,000,000 for a term of 3 years plus extensions. This lender provides non-recourse financing and stepdown prepayment options. Floating rate pricing is also available up to $60,000,000.

More Hot Money ›

Pascale's Portrait
Treasury Yields Spike on Longer Than Expected Inflation Battle   

This week, the 10-year treasury yield rose above the key psychological level of 4.00%. Hawkish statements by Fed policymakers indicate a resolve to not cut rates until 2024. Recent hotter-than-expected data(CPI, PCE, etc) has changed the narrative: inflation may be “stickier” than was assumed. This week also saw high CPI data from the 3 largest economies in Europe: England (10.1%), Germany (9.3%), and France (7.2%). This is driving up international bond yields. The latest market/futures/Fed talk consensus estimates are for 25 bp increases at the next three meetings and then (hopefully) a pause. That would put the Fed Funds rate, and SOFR, at around 5.40% at mid-year, aka the “Terminal Rate.” This month’s data is especially critical. The Fed is highly focused on labor/service costs and a(seemingly and stubbornly) tight job market as the main driver of inflation. This month’s data releases are critical (when aren’t they these days?) – Job openings 3/8, Employment report 3/10, CPI 3/14, PPI 3/15. The WSJ reported yesterday on signs of a cooling labor market in private-sector job postings. This trend has not yet appeared in official Labor Department data releases: the infamous “lagging indicators” may be at work here. Also, December and January data releases are skewed by “seasonal adjustments.” Therefore the March data releases (based on February’s data) may confirm some long-awaited “slack” in the labor market. As we approach the 1 year anniversary of the first Fed increase, the path forward remains murky. Stay tuned…

By David R. Pascale, Jr., Senior Vice President at George Smith Partners

More Perspectives ›

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


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Los Angeles, CA 90067
Office 310.557.8336
Fax 310.557.1276
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