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FINfacts™ XXIV – No. 370 | May 24, 2023
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| Prime Rate |
 8.25% |
| 1 Month LIBOR |
 5.14% |
| 6 Month LIBOR |
5.50% |
| 5 Yr SOFR Swap |
3.58% |
| 10 Yr SOFR Swap |
3.46% |
| 5 Yr US Treasury |
3.81% |
| 10 Yr US Treasury |
3.74% |
| 30 Yr US Treasury |
3.95% |
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Rate: Fixed at 6.01% for 7 years
Interest Only: 4 Years
LTV: 50%
Guaranty: Non-Recourse
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Transaction Description:
George Smith Partners successfully arranged $9,327,000 in acquisition financing for the purchase of three prime retail properties adjacent to top colleges across different states. The properties are all performing very well but do not have credit tenants. Overcoming the reluctance of regional banks to cross-collateralize and the high rates offered by many lenders, we sourced a national bank that could loan on all three properties. The lender provided a seven-year fixed rate term and 4 years of Interest Only payments. The strategic placement of these properties in prime locations is expected to drive significant value appreciation. By structuring the loans with low leverage, we allowed the Sponsor to complete a 1031 exchange. The cross-collateralized loan with release provisions allowed the seamless acquisition of the assets.
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George Smith Partners has identified a capital provider financing up to 90% of cost for home builders who are switching strategies from ‘for-sale’ to rental. Pricing starts at SOFR+400 and is non-recourse for properties nationwide. This program allows home builders to continue financing construction on their bank revolvers while aggregating rental units using the capital provider’s credit facility. 30 month initial term with extension options, this lender can finance up to $50,000,000.
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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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