Hot Money

George Smith Partners recently went into app with a capital provider financing land acquisition with pricing just over 6%. The balance sheet lender can provide financing on all major asset types, provided that the property is within its geographic footprint of NV, UT, OR, and ID. Financing up to $15,000,000 with no prepayment penalties, loans can close in less than 30 days. Interest only options are available.

George Smith Partners is working with a capital provider with a clean balance sheet providing permanent fixed-rate debt financing up to $10,000,000. With multifamily rates starting at 5.60%, this portfolio lender offers loan terms from 3 to 10 years with step-down prepayment options. For 3 year loans, the lender’s prepayment penalty is open after 2 years. Financing only in California, this capital provider can go up to 75% of value on multifamily, self storage, warehouse, industrial, office, and retail (anchored and unanchored).

George Smith Partners is working closely with a capital provider who is actively seeking to grow their build-for-rent portfolio. The capital provider creates an agreement with the developer by entering into a fixed-price purchase contract at any point of the development and funding up to 95% of the total project cost. The interest is 100% accrued until they start purchasing finished homes at certificate of occupancy. They can also purchase all units at final certificate of occupancy. This capital provider has a footprint across the nation.

GSP has identified a nationwide capital provider of fixed-rate senior bridge loans with a 2-year term. The program is intended for properties that are leasing up but need some additional runway before a perm loan can be put in place. Pricing starts at 2 Year UST + 3.00%, and the rate can be locked at application. Minimum interest is 12-15 months, after which the loan can be paid off without penalty. Since the loan is fixed, the borrower does not have to buy an expensive cap, which saves over 1% upfront in the current volatile interest rate environment.

George Smith Partners has identified a capital provider that specializes in financing the construction of build-for-sale (BFS) and build-for-rent (BFR), single-family residential properties. The lender can fund non-recourse construction debt up to 75% LTC. With floating rates starting at SOFR + 300, they can fund loans from $5,000,000 to over $100,000,000. This capital provider lends nationwide and has recently been very active in western markets.

George Smith Partners is working with multiple capital providers offering high leverage participating loans for ground up construction and value add deals up to 90% LTC. Rates are 4.25%-6.5% fixed during the life of the loan with an IRR lookback to the lender and then lender receives between 15% and 50% of the profits from operations and the exit. Recourse with burn off and non-recourse options available. Most major cash flow-generating property types are considered.

George Smith Partners has identified a CMBS lender sourcing loans for an $800M pool made up of only 5-year term loans. Pricing for the 5 Year financing begins at Swap +275 for 50-60% LTV.  This is 50 – 75 basis points lower than typical 5-year pricing. This capital provider can also structure the 5^th year to be open to prepay for a low spread premium. This program is ideal for borrowers looking for a non-recourse fixed rate option with the ability to refinance or sell in 4-5 years with no prepayment penalty.

George Smith Partners has identified a capital provider financing high-leverage, non-recourse land loans. Floating rate pricing starts at SOFR+8% with the ability to close in less than 30 days. This lender is competitive in special situations and opportunistic projects and will upsize current land loans if the borrower has increased the value of the parcel during their ownership. This portfolio lender recently funded 100% of actual costs due to substantial value created during the pre-development cycle. Basing proceeds off the property’s present value, loan sizes range from $20,000,000 – $250,000,000 for transactions nationwide.

George Smith Partners is currently working with a capital provider funding permanent multifamily debt up to 65% LTV, with rates starting at 4.15% on both 5-year and 7-year loans. Financing in the western US, this lender’s sweet spot is between $5,000,000 – $20,000,000 with the ability to go higher on select deals. This capital provider has non-recourse and interest-only options available along with stepdown prepayment structures.

George Smith Partners has identified a debt fund providing mezzanine financing for ground-up construction. The capital provider will lend in the top 20 MSA with rates starting at SOFR+10%. The minimum capital allocation per deal is $10,000,000, with the ability to go $20,000,000, and leverage up to 80% LTC. Property types include multifamily, student housing, and industrial. The capital source has a strong appetite for institutional level opportunities.

George Smith Partners has identified a capital provider funding bridge loans up to 85% LTV. The loans are non-recourse and do not require a DCR test on the stabilized cash flow; allowing the lender to provide higher proceeds despite the current interest rate environment. Fixed rates start at 5.50% and floating rates start at SOFR + 5.00%. This capital provider lends nationwide on all major asset types including RV parks, self-storage, and student housing.

George Smith Partners is currently placing high leverage, non-recourse bridge financing through a national portfolio lender. Funding value-add transactions from $2,000,000 to $30,000,000, the Capital Provider offers a specialized program through flexible loan structures with the ability to lower cap requirements to 2 years. Floating rate pricing is priced over 30-Day Average SOFR, starting at SOFR + 400. The Lender has a particularly strong appetite for multifamily in high-growth markets in Texas, Florida, Georgia, Ohio, and Kentucky.