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FINfacts™ XXIV – No. 365 | April 19, 2023
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| Prime Rate |
 8.00% |
| 1 Month LIBOR |
 4.95% |
| 6 Month LIBOR |
5.41% |
| 5 Yr SOFR Swap |
3.52% |
| 10 Yr SOFR Swap |
3.34% |
| 5 Yr US Treasury |
3.74% |
| 10 Yr US Treasury |
3.63% |
| 30 Yr US Treasury |
3.80% |
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Rate: 6.75% Fixed (Index + 2.77%)
Term: 5 Years
Interest-Only: Full Term
LTV: 50%
Debt Yield: 15%
Guaranty: Non-Recourse
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Transaction Description:
George Smith Partners secured $14,100,000 in permanent financing for the acquisition of a 5,666 square-foot luxury, high-street retail property located at 909 N. Michigan Avenue, in the heart of Chicago’s Magnificent Mile Shopping District. The three luxury retail tenants include Bulgari, Omega Watches, and Chicago’s own Burdeen’s Jewelry. The Sponsor purchased the retail parcel from the owner of the Westin Michigan Avenue Chicago for $27,300,000, approximately $4,818 per square foot.
During the closing process, the capital markets experienced considerable volatility with the fallout from Silicon Valley Bank and First Republic Bank causing a seismic shift to the debt markets prior to funding of the loan. George Smith Partners was able to hold proceeds on the loan and closed the 5-year fixed rate note with full-term interest only by leveraging our lender relationships and augmenting with appropriate structure.
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George Smith Partners has identified a capital provider financing value-add bridge loans up to 80% of cost. For multifamily, industrial, and hospitality assets, loan amounts range from $5,000,000 – $65,000,000. With pricing starting at SOFR + 2.75%, terms are interest only and non-recourse. This capital provider lends nationwide and offers terms up to 60 months with open prepayment.
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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 - 2023 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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