Hot Money

George Smith Partners identified a national joint venture equity provider seeking to invest in multifamily properties with strong current cash flows in partnership with strong sponsors. With the ability to go up to 90% of the total capital stack, the equity provider will fund equity contributions from $1,000,000 to $20,000,000 inclusive of secondary and tertiary locations. The Sponsor will receive a promote structure based on each transaction’s merits.

George Smith Partners is currently placing non-recourse bridge financing up to $20,000,000 for all major property types nationwide. This balance sheet lender offers up to 70% LTC for loans with terms 3+1 each extension option at 0.5%. Pricing is L+450-550 on a 0.5% floor with 0% in and 1% to 1.5% exit fee. They can close in 30 days from application.

George Smith Partners is working with a capital provider that will provide fixed and floating rate financing with 70% of cost for multi-family, 65% for all other commercial and 75% for construction. With a focus on Southern California, Las Vegas Washington, Texas, Chicago and New York the portfolio lender offers terms up to 10 years, loan sizes go up to $50,000,000 and pricing starts at 4%. Program highlights include step down prepayment for Bridge, Permanent and Construction financing.

Historically, GSP has funded multiple transactions with a bank CMBS originator who is now pre-loading their pipeline with balance sheet executions. Floating rate non-recourse loans are being funded today from $15,000,000 and higher for multifamily, self-storage, industrial and office projects. Sized to a 65% LTV, the two-year term will require monthly debt service from operations on an interest only basis priced at LIBOR plus 300 to 375. There will be no prepayment penalty or exit fee should the bank take themselves out with a CMBS permanent execution once the markets re-stabilize.

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.