Transaction Description: 

George Smith Partners successfully arranged a 5-year, non-recourse, interest only loan for a 91% occupied, multi-tenant office building in the Pasadena Playhouse District. While the building was originally built as traditional office, the basement has been converted to a 2-story gym with a pool, and two of the upper floors contained a cooking school which is now being used as a commissary to manufacture food for distribution. The special-use nature of the space provided a challenge in today’s market. GSP worked with a lender to validate the financial strengths of the tenants and their need to be in this building. While most office building refinances require new cash to be invested at closing, GSP was able to negotiate a small amount of cash-out that the Sponsor is allowed to use for any future leasing requirements. This is the third time that GSP has financed the building, for two separate owners. 

Advisors

Steve Bram Managing Director & Principal / GSP Co-Founder

David R. Pascale, Jr. Senior Vice President

Allison Higgins Senior Vice President

Nick Rogers Vice President

Transaction Description 

George Smith Partners has successfully secured $2,400,000 in Joint Venture and Co-GP Equity for the renovation/redevelopment project of a current five-story residential building spanning 25,519 square feet and housing 50 affordable units in Downtown DC. Through skillful orchestration, GSP arranged a programmatic equity agreement that offers investors enhanced returns over a prolonged period. This strategic collaboration between the Sponsor and GSP aimed to secure a steadfast equity provider for future ventures. 

Simultaneously, the equity provider gains the privilege of tapping into the Sponsor’s expansive project pipeline, thereby opening doors to potential future funding returns. This mutually beneficial arrangement not only ensures the success of the current project but also establishes a foundation for continued collaboration and growth in future endeavors. 

AXCS Investments, acting as the Co-GP, brought its investment expertise to the table, leveraging its financial acumen and industry knowledge to forge a strategic collaboration with the Sponsor. This collaboration showcased the synergies between the partners involved, underscoring their ability to seamlessly integrate investment and brokerage services for a successful and mutually beneficial real estate transaction. 

Advisors

Justin Piasecki President of George Smith Partners

Thomas Butler Associate