Hot Money

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.

GSP has identified a bridge lender providing financing up to 85% loan to cost. Light transitional bridge is priced with a spread of 300 to 400 basis points over SOFR, while heavy bridge is priced with a spread of 400 to 600 basis points over SOFR. The lender will underwrite to a 6.5% stabilized debt yield. Product types include multifamily, self-storage, industrial, hospitality, and student housing.

George Smith Partners is in application with a capital provider funding take-out loans for new multifamily buildings, in lease-up, and prior to stabilization. Transactions range from $5,000,000 – $40,000,000 and can be sized up to 65% of “as stabilized” value. The rate is locked at application and prices in the mid-4.00% range for a seven-year execution. This on-book portfolio lender will close on a pro-forma and C of O, with only a 25% occupancy threshold. Coupons are fixed without the use of SWAPs allowing for prepayments that do not include a loss of yield formula.

George Smith Partners has identified an equity provider seeking to deploy $600,000,000 in JV equity. They are pursuing multifamily, industrial, hospitality, for-sale residential and BTR strategies. With financing starting at $15,000,000, this equity provider is open to deals across the nation with an IRR of 15% or higher.

George Smith Partners has identified a specialty lender providing fixed-rate permanent and bridge financing for multifamily and mixed-use properties nationwide. Transactions range from $2,000,000 to $25,000,000 with leverage up to 75%. For permanent financing, the Lender has non-recourse and interest-only options available along with aggressive underwriting down to a 1.15x DSCR. For bridge financing, the Lender can go as low as 1.00x DSCR.

George Smith Partners has identified a capital provider funding up to 85% of cost on most asset types between $1,000,000 to $15,000,000. The Lender provides time-sensitive bridge financing and can close in as little as 7 days. With a strong appetite for self-storage, value-add, and distressed transactions, the Lender is funding floating-rate transactions in most states, nationwide. This capital provider is a balance sheet lender and has non-recourse options available.