Finfacts XXIV – No. 466
July 30, 2025Market Rates
Recent Financings
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Advisors
Matthew Fisher
Senior Director
Martha Martinez
Assistant Vice President – Capital Markets & Loan Servicing
Rate: 6.61%
Term: 7 Years
Prepayment: Yield Maintenance
Guaranty: Non-recourse
Lender Fee: None
Refinance
Transaction Description:
George Smith Partners arranged the refinance of a single tenant commercial building located in Lacey, WA. The project is an 8,560 SF daycare center that is leased to a licensed preschool and day care center providing early childhood education.
This was a non-recourse, fixed-rate loan funded by a life insurance company who charged no origination fee. The loan is fully assumable, has a yield maintenance prepayment penalty, and provided estate planning language at the request of the Sponsor.
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Advisors
Steve Bram
Senior Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Director
Nick Rogers
Vice President
Rate: 6.33% (2.00% over the 10 Year UST) locked at application
Term: 10 years Fixed
Amortization: 30 yearsLTV: 55% (As-Is), 60% (As-Completed)
Prepayment: Yield Maintenance with 18-month lockoutGuaranty: Recourse during construction phase
$5,000,000
Transaction Description:
George Smith Partners successfully closed a refinance of a multi-tenant industrial property in Omaha, Nebraska with a relationship life insurance company. The transaction provided immediate refinancing of the existing facility plus a future funding commitment for expansion. The deal featured an innovative structure that secured fixed-rate future funding of an additional $2.5 million for construction and stabilization of an adjacent expansion facility, despite the expansion leases not being executed at closing.
Despite challenging market conditions, GSP negotiated favorable terms including waived Phase I environmental and property condition reports, reflecting the strong tenant profile and Sponsor relationship. This was the client’s original lender, but GSP obtained competitive quotes from other institutions, resulting in the original lender becoming much more aggressive on terms. The lender agreed to flexible documentation requirements and streamlined due diligence given the quality of the asset and tenancy.
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Advisors
Jake Sachse
Director
Grant Pugatch
Vice President
Term: 18 months
LTC: 75%
Guaranty: Non-Recourse
$5,700,000
Transaction Description:
George Smith Partners closed a $5,700,000 loan for the construction of a for-sale, 12-home, master-planned community located in Denver, CO. The request presented a unique challenge in that the individual units are prefabricated off-site and transported to the property.
GSP was able to source a lender that specializes in phased developments and is comfortable with prefabricated construction. The loan is non-recourse, with the carve-out guarantees signed by a corporate entity rather than an individual. The overall funding is 75% of the project costs. The floating rate will allow the borrower to benefit if interest rates decline.
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Advisors
Michael Anderson-Mitterling
Managing Director
Jordan Lipton
Senior Vice President
Nicholas Drohan
Vice President
Grant Pugatch
Vice President
Proceeds: $16,250,000
Leverage: 75% LTV.
Total Term: 108 Months (24 months IO & 84 Months 25-year amortization schedule)
Bridge Pricing: 6.75% All-In Rate (PRIME less 0.75%) for the first 24 months
Min-Perm Pricing: 7-Year Treasury + 2.50% on a 25-year amortization schedule thereafter.
$16,250,000
Transaction Description:
George Smith Partners successfully arranged $16,250,000 in bridge financing for the acquisition of a 111-unit class-A multifamily property located in a prime urban infill Midwest market.
The financing request was part of a larger business plan involving the recapitalization and acquisition. Given the Sponsor’s goal to operate both assets as one community, GSP structured the loan with an initial 24-month interest-only term followed by an 84-month mini-perm. This structure provides the sponsor with flexibility through the acquisition, repositioning, and stabilization to align with the existing financing on the adjacent property.
Pascale’s Perspective
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Japan Market on the Move: JGB Sell-Off, Political Shifts, and Trade Tailwinds, Unwind of Carry Trade?
A confluence of political, fiscal, and monetary developments is reshaping the landscape of Japanese markets. Most notably, the recent sell-off in Japanese government bonds (JGB) has drawn investor attention. Much of the pressure stems from heightened concerns around the July 21 Upper House election, where the ruling party lost its majority, an outcome that raised the prospect of looser fiscal policies, potential tax cuts, and a heavier sovereign debt load. These dynamics have fueled upward pressure on yields.
On the trade front, a notable development emerged on July 22, when the U.S. and Japan reached a tariff agreement setting duties at 15%, well below the previously expected 25%. The more moderate outcome may provide BOJ with additional room to tighten policy. Shortly after the trade deal, BOJ Deputy Governor Shinichi Uchida conveyed a more optimistic tone, stating, “Given the receding uncertainty, by definition it can be said that the likelihood of Japan durably achieving 2% inflation has heightened.” His comments reinforce the view that conditions for resuming rate hikes may soon fall into place. Markets are now pricing in at least one hike by the end of 2025. With stronger economic data, the prospect of large-scale fiscal spending, and waning external headwinds from tariffs, the BOJ is expected to maintain a more hawkish tone in the near term.
Upward pressure along the JGB yield curve has already narrowed the spread between U.S. and Japanese 10-year Treasury yields by 55 basis points since July 2024, when the BOJ initiated its tapering cycle. If this trajectory holds, it could accelerate the unwind of long-standing carry trades. This could put additional upside pressure on U.S. Treasury yields.
Treasury-Backed Stablecoins
On July 18, President Trump signed the GENIUS Act into law, establishing the first comprehensive federal framework for regulating U.S. dollar-pegged stablecoins. The legislation requires stablecoins to be fully backed by liquid assets, with short-term U.S. Treasuries (T-bills) expected to make up a significant share of reserves. This regulatory clarity is likely to drive substantial near-term demand for T-bills and further extend the cap to the short-term borrowing rate, SOFR.
At a time when de-dollarization narratives have gained momentum over the past decade and investor interest in crypto assets has grown, the GENIUS Act may serve to reinforce the central role of the U.S. dollar and the Treasury market in global finance. If you can’t beat them, join them, and better yet, bring them onto your team. By embracing the infrastructure of stablecoins under a regulatory framework anchored in U.S. sovereign assets, the U.S. is not only adapting to digital innovation but also reasserting its influence within it.
By Annie Lai, Analyst at GSP’s Bellevue, WA Office.
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