FINfacts™ XXIV – No. 363 | April 5, 2023

Prime Rate 8.00%
1 Month LIBOR 4.87%
6 Month LIBOR 5.34%
5 Yr SOFR Swap 3.09%
10 Yr SOFR Swap 3.00%
5 Yr US Treasury 3.32%
10 Yr US Treasury 3.29%
30 Yr US Treasury 3.56%

$11,930,000 Bridge Financing for 3 Properties; Southern CA

Blended Rate: 7.9% – 10.5%
Blended Rate – Based on Leverage
Loan to Purchase Price: Up to 85%
Term: 12 Months
Guaranty: Non-Recourse

Transaction Description:

GSP utilized a quick close bridge fund to provide 3 separate loans:
$7,150,000 Distressed Multifamily Purchase – 80% LTC in Los Angeles
$2,200,000 Mixed-Use, Retail-Residential – 65%LTV in Los Angeles/Venice
$2,580,000 Restaurant/Retail – 65% LTV in Pasadena

George Smith Partners successfully arranged three bridge financings in Southern California. In today’s turbulent market, private quick close options are sometimes necessary. The ability to act quickly often allows our clients to become the chosen Buyer- purchasing these Properties at a large discount or solve a tenant/occupancy issue before a permanent refinance.

GSP worked with a local REIT to develop a program that includes a first and second private mortgage of up to 85% of acquisition price. With the fund and GSP, the loans are underwritten to the future value, to allow the client to implement their strategy. When used for purchasing a property, the loans are designed to provide the same surety of close as an all-cash buyer, with no appraisal needed and the ability to close as fast as 5 business days. The loans are non-recourse and have no prepayment penalty.

These loans are cheaper and easier than equity partners and allow the Sponsor to take advantage of opportunities using less cash.

Build-to-Rent Financing up to 80% of Cost

George Smith Partners is working with a capital provider financing build-to-rent projects up to 80% of cost and 75% of value. Loan sizes range from $3,000,000-$50,000,000, non-recourse with carve outs and up to 36 months of term in select markets.  Please reach out to inquire about this capital provider. 

More Hot Money ›

Pascale's Portrait
Treasury Yields Drop as “Lagging Slack” Shows Up in Jobs Reports

This week’s data and treasury market reaction are significant for 2 reasons: (1) It’s been 2 weeks since headlines regarding the banking crisis and (2) Employment reports this week may be indicating loosening labor demand. In the last year, the Fed has become increasingly concerned about job openings vs unemployed workers as the usual survey data (JOLTS, etc.) showed a ratio as high as 2 to 1. As major corporate layoff announcements have been occurring multiple times a week and real time data from private job listings (, Zip Recruiter, etc.) show plummeting job postings, many analysts feel that the Fed was looking at lagging data. The phrase “zombie job postings” and reports of skewed survey results imply that the official data is lagging. Monday’s data indicated continuing contracting in manufacturing (ISM). Tuesday saw job openings (officially) fall 700,000 to below 9.9 million- the lowest in 2 years and a lower than expected job creation number. Today’s jobless claims continued the narrative with higher applications both now and upwardly revised over the past few months (based on updated methodology). Will the Fed possibly realize that they have already raised rates enough to loosen the labor market? Tomorrow’s monthly major unemployment report might shed more light. 10 Year treasuries rallied down to 3.29%.

As systemic banking issues have receded from the headlines, the issues are not solved. The Real Estate Roundtable’s recent letter to the FDIC and the Federal Reserve highlights the issues and suggests some solutions. It notes that recent interest rate moves by the Fed have stressed bank balance sheets as treasuries and MBS are now worth less. There is $1.45 trillion in looming commercial and multifamily debt maturities in 2023-2025- banks and thrifts hold just over 50% of total CRE debt. The letter requests the establishment of a TDR (troubled debt restructuring) program that will encourage regulators to allow loan modifications during times of economic instability. This will avoid Banks being “forced” into foreclosing and/or putting sponsors into default due to restrictions on their ability to modify loan terms. Banks are also asking for increased deposit insurance which will put them on equal standing amongst depositors with the “TBTF” money center banks. The combination of increased depositor confidence and balance sheet flexibility could be part of a solution. Stay tuned…

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


Constellation Place
10250 Constellation Blvd., Ste. 2700
Los Angeles, CA 90067
Office 310.557.8336
Fax 310.557.1276
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