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FINfacts™ XXIV – No. 359 | March 8, 2023
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| Prime Rate |
 7.75% |
| 1 Month LIBOR |
 4.72% |
| 6 Month LIBOR |
5.34% |
| 5 Yr SOFR Swap |
4.11% |
| 10 Yr SOFR Swap |
 3.67%
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| 5 Yr US Treasury |
4.32% |
| 10 Yr US Treasury |
3.95%
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| 30 Yr US Treasury |
3.83% |
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Rate: 5.34%
Loan Fee: Par
Term: 3+5+7 (Fixed Rate Resetting at Each Interval)
Amortization: 2 Years Interest Only
Prepay: 3, 2, 0%
Guaranty: Recourse
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Transaction Description:
George Smith Partners placed a $11,350,000 loan for the refinance of a 60-unit historic multifamily property in Downtown Los Angeles. The loan request was started in Q4 of 2022 when many banks had stopped lending after reaching their full allocation for the year. As a result, GSP engaged in an extensive marketing process that included over 30 lenders. A California-based credit union was sourced that quoted a rate of 5.62%. The lender used a 1.20x DCR and underwrote to the start rate of the loan. This resulted in proceeds of $1.0MM more than several other lenders. During the closing process, the 3-year Treasury temporarily dropped, and the lender re-quoted the rate at 5.34%.
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George Smith Partners has identified a capital provider financing bridge loans starting at SOFR + 350 for loan amounts $20,000,000 and up. With leverage up to 65%, this lender does not require interest rate caps. While this capital provider does not finance ground up construction or land, they will provide financing for properties pre-TCO. This program is suited for properties that are within the 4 major property types and located anywhere in the US west of Colorado.
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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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Constellation Place
10250 Constellation Blvd., Ste. 2700
Los Angeles, CA 90067
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© 1999 - 2024 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
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