GSP Insights

George Smith Partners has identified a capital provider financing multifamily properties up to 90% LTC. For loan sizes $2,000,000-$20,000,000, fixed rate pricing starts at 9.25%. Terms are interest only for 2 years plus extensions. This lender offers non-recourse financing, lends nationwide and can close quickly.

 

This capital provider also offers ground up and horizontal construction financing for multifamily products. Pricing starts at SOFR+650.

George Smith Partners has identified a capital provider financing mezzanine loans and preferred equity starting at SOFR+400. Terms are from 2-5 years plus extensions for loan sizes from $25,000,000-$125,000,000. Financing up to 80% of value, this capital provider will lend in primary and secondary markets nationwide. Asset types include multifamily, industrial, office, self-storage, hotel, retail and, data centers. This capital provider also provides senior financing with pricing starting at SOFR+300, up to $150,000,000.

George Smith Partners has identified a capital provider financing senior bridge loans up to 85% of cost. For loan amounts from $10,000,000 to $150,000,000, pricing starts at SOFR+350. With the ability to close in 5 business days, this lender will finance nationwide. Terms are non-recourse and up to 3 years plus extensions with flexible prepayment options. This capital provider also provides mezzanine financing and preferred equity with pricing starting at SOFR+850.

George Smith Partners has identified a capital provider financing bridge and construction loans floating at term SOFR+250-400. Terms range from 2-3 years and are interest-only with the ability to convert to a mini-perm with P&I payments. With leverage up to 65% of cost, multifamily, industrial, retail, office, multi-family, self-storage, hospitality, and entitled land will be considered. This capital provider will lend nationwide with a focus on southern California and Nashville, TN.

George Smith Partners has identified a capital provider eagerly deploying capital for bridge loans from $15,000,000 to $60,000,000. For all major asset types, pricing starts at SOFR+400 and are non-recourse. This Lender will finance nationwide, up to 70% LTV for terms up to 36 months with extension options. Rate caps are not required and the loans are full term interest only.

George Smith Partners has identified a capital provider financing bridge and ground-up construction for loans from $10,000,000 to $50,000,000. For all asset types besides hospitality and senior living, fixed and floating rate pricing starts at SOFR+600. This lender will finance nationwide up to 75% of value. Terms range from 1-3 years and are non-recourse.

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.

George Smith Partners has identified a capital provider that specializes in quick close bridge financing. With the ability to close in under 5 business days, this lender provides financing up to $45,000,000. Typical terms are one year with extension options up to 70% leverage. This program encompasses all asset types, nationwide.

George Smith Partners is working with a capital provider financing construction loans up to 70% of cost. Lending on all asset types with a focus on multifamily, mixed-use, industrial, warehouse, and storage, fixed rate pricing starts at 9%. For transactions from $10,000,000 – $75,000,000, terms are up to 36 months with extension options. This capital provider lends in primary and secondary markets nationwide and also provides bridge and mezzanine financing.   

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.

George Smith Partners has identified a capital provider with a non-recourse participating construction program funding up to 75% of cost for multifamily & industrial projects in major MSAs only.

 

This week’s data and treasury market reaction are significant for 2 reasons: (1) It’s been 2 weeks since headlines regarding the banking crisis and (2) Employment reports this week may be indicating loosening labor demand. In the last year, the Fed has become increasingly concerned about job openings vs unemployed workers as the usual survey data (JOLTS, etc.) showed a ratio as high as 2 to 1. As major corporate layoff announcements have been occurring multiple times a week and real time data from private job listings (indeed.com, Zip Recruiter, etc.) show plummeting job postings, many analysts feel that the Fed was looking at lagging data. The phrase “zombie job postings” and reports of skewed survey results imply that the official data is lagging. Monday’s data indicated continuing contracting in manufacturing (ISM). Tuesday saw job openings (officially) fall 700,000 to below 9.9 million- the lowest in 2 years and a lower than expected job creation number. Today’s jobless claims continued the narrative with higher applications both now and upwardly revised over the past few months (based on updated methodology). Will the Fed possibly realize that they have already raised rates enough to loosen the labor market? Tomorrow’s monthly major unemployment report might shed more light. 10 Year treasuries rallied down to 3.29%.

As systemic banking issues have receded from the headlines, the issues are not solved. The Real Estate Roundtable’s recent letter to the FDIC and the Federal Reserve highlights the issues and suggests some solutions. It notes that recent interest rate moves by the Fed have stressed bank balance sheets as treasuries and MBS are now worth less. There is $1.45 trillion in looming commercial and multifamily debt maturities in 2023-2025- banks and thrifts hold just over 50% of total CRE debt. The letter requests the establishment of a TDR (troubled debt restructuring) program that will encourage regulators to allow loan modifications during times of economic instability. This will avoid Banks being “forced” into foreclosing and/or putting sponsors into default due to restrictions on their ability to modify loan terms. Banks are also asking for increased deposit insurance which will put them on equal standing amongst depositors with the “TBTF” money center banks. The combination of increased depositor confidence and balance sheet flexibility could be part of a solution. Stay tuned…