Rate: 30-Day LIBOR + 2.15%
Term: 10 Years
Amortization: 48 months interest only; 30-year amortization thereafter
LTV: 75%
Prepayment: 12-month Lock-out, 1% pre-payment penalty thereafter
Guarantee: Non-recourse
Origination Fee: 0.50%

GSP successfully arranged a total of $58,000,000 in Acquisition Debt and Joint Venture Equity Financing for the acquisition and reposition of a 1970’s/1980’s vintage work-force housing portfolio consisting of 680-units in an Atlanta submarket. The Financing consisted of $45,000,000 in non-recourse acquisition debt financing and $13,000,000 of joint venture equity (80%/20% co-invest). GSP structured the variable rate debt facility as two uncrossed loans utilizing the Agency green program to achieve favorable leverage of 75% loan-to-value and a reduced interest rate of LIBOR + 2.15%. The Sponsor with their newly formed joint venture equity partnership will implement a value-add reposition strategy by investing a combined $5,500,000 into the two properties, to upgrade property common area amenities, interiors, and implement a green–energy saving initiative. Through the reposition, Sponsor’s cash flow is maximized as the loan is interest only during the initial four-year term.

Advisors

Nick Rogers Vice President

Rate: 5.25% fixed for 5 years, Prime plus 1.25% thereafter/ Prime plus 1.25%
Term: 7 years, fixed for 5 years / 5 years
Amortization: 25 years / 5 years
LTV: 69%
Prepayment: 5% 4% 3% 2% 1%
Lender Fee: 0.50%

Hotel Financing – George Smith Partners placed $3,710,000 financing on a 79-unit limited service hotel in the Southwestern United States.  Constructed in 2010 by our Sponsor, all loan proceeds were used to refinance the existing debt and cover closing costs.  GSP identified a lender who was comfortable with the borrower’s strength and understood the economics of the transaction.  During underwriting, the appraisal came in at a value more conservative than expected. Our capital source agreed to advance a short term commercial loan of $200,000 at Prime plus 1.25%, self-amortized over 5 years to avoid the need for additional cash equity infusion from our Sponsor. Fixed for 5 years at 5.25%, the senior loan floats for two years at Prime plus 1.25% for the seven-year term.

Rate: 4.50%
Term: 10 year fixed
Amortization: 30-year amortization
Loan to Value: 75%
Prepayment: None

George Smith Partners successfully arranged $3,500,000 acquisition financing of a single tenant triple net asset located near Austin, Texas. The in-place retailer is a well-known regional auto body repair shop who recently signed a lease and occupied the space. It was crucial to identify a lender who could be aggressive for a Sponsor with limited net worth and liquidity. Fixed for 10 years at 4.50%, the recourse loan was sized to 75% of the total capitalization with no prepayment penalty. Previously financed by a 100% loan to cost construction loan, the subject property had recently been completed and occupied. GSP worked closely with the investment sales broker to assist in supporting the asset value to our niche lender.