Hot Money

Given the instability of the credit markets at this time while the “spigots” are on, rates and proceeds continue in a state of flux. To address certainty of execution “as applied for”, several debt funds, family office and private high-net-worth individuals have stepped in with their balance sheet and have the availability to fund and record within five business days. Rates vary depending on leverage, asset type and location. Pricing can range from 5.9% to 12.5+% for a 12 month term. Prepayment penalties are often limited and in some zero, to allow for recapitalization once stability returns to the institutional market.

George Smith Partners is working with a national lender offering senior bridge, construction, and mezzanine/preferred equity programs ranging from $10,000,000 to $150,000,000 for all property types across the country. Pricing starts at L+250 for senior bridge loans and L+500 for mezzanine and preferred equity investments, with terms up to five years. On select stretch senior offerings, they can offer the borrower the option to convert a higher leverage, 60-85% LTC piece to preferred equity with up to eight years of duration.

George Smith Partners is working with a national lender providing non-recourse financing for properties in all phases of value creation from land through fully performing assets. Funding transactions from $20,000,000 to $75,000,000 this lender focuses on the top 25 markets in the U.S. With the ability to advance up to 85% of development value, pricing starts at L+550 – L+800 with terms up to three years and extension options available.

George Smith Partners is working with a nationwide capital provider for borrowers and sponsors seeking preferred equity and mezzanine financing to implement their business plans, including lease-ups, recapitalizations, construction completion on partially completed projects, basic and complex value-add strategies, transitional repositioning and stabilizing asset operations. Funding transactions from $3,000,000 to $25,000,000 this lender can structure behind Agency, CMBS and bank loans. With a focus on multifamily they can go up to 90% and can close in 40 days without an appraisal.

George Smith Partners is working with a national lender providing non-recourse construction financing for spec office, industrial and for-sale condo projects up to $100,000,000. Completion guarantees will still be required. With the ability to advance 95% of development value, pricing starts at 7% for terms up to three years. The lender can close quickly.

George Smith Partners is currently placing non-recourse stretch senior loans, subordinate debt, preferred equity, JV equity and stretch senior loans for all major property types nationwide. This Lender offers up to 95% LTC for stretch senior loans (min $60,000,000 total capitalization) and for preferred equity / JV equity (min $20,000,000) with terms ranging from two to ten years.

GSP identified a LP Equity provider for ground up development, value-add and core properties including anchored & unanchored retail for mixed use, retail or multifamily projects. Target in top MSA’s and assume 60-65% leverage. Gross deal size is $40,000,000 – $150,000,000.

George Smith Partners is working with a national portfolio lender providing construction loan take-out permanent programs for all product types ranging up to $65,000,000 in primary and secondary markets prior to stabilization. With the ability to advance 75% of development cost, pricing starts at 3.50% for terms from five to ten years and the program offers a flexible stepdown prepayment. This lender offers true non-recourse and carve outs to an entity and not a warm body.

George Smith Partners is currently placing non-recourse small balance financing for owner occupied and investment properties. For owner occupied properties, this lender offers 80% LTV on conventional financing up to $5,000,000 and up to 90% LTV with an SBA 504 loan up to $10,000,000. For investment properties including industrial and office buildings, retail properties, warehouses and multifamily/apartment buildings, their commercial loan programs can provide up to $3,000,000 in financing with 75% LTV. The Lender waives loan fees on new deals.

George Smith Partners is currently placing non-recourse small balance financing for owner occupied and investment properties. For owner occupied properties, this lender offers 80% LTV on conventional financing up to $5,000,000 and up to 90% LTV with an SBA 504 loan up to $10,000,000. For investment properties including industrial and office buildings, retail properties, warehouses and multifamily/apartment buildings, their commercial loan programs can provide up to $3,000,000 in financing with 75% LTV. The Lender waives loan fees on new deals.

George Smith Partners is working with a national capital provider that will provide non-recourse fixed rate financing with an earnout up to 80% of cost. With terms up to 5 years, loan sizes range from up to $40,000,000 (larger in certain circumstances) and pricing starting in the high 200 bps over LIBOR for core asset types as well as co-living, self-storage, student housing, hospitality, commercial condo and specialty use. Program highlights include no negative arb, flexible prepayment and non-cash flowing assets.

George Smith Partners is working with a national capital provider funding non-recourse bridge debt to 80% of total cost. True proforma based underwriting with a strong appetite for Multifamily and Mixed- Use properties (up to 100+units) with no in-place cash flow requirements. The Lender offers flexible loan structures with interest only terms up to 3 years for transactions up to $15,000,000. Risk adjusted, fixed rate pricing starts at 6.75%, fixed for the life of the loan with no extension fees. Closing costs including lender legal are less than $2000.