Hot Money

George Smith Partners just connected with a National Bank that shared their targeted approach for 2024 in the CRE Lending space.

They focus on Bridge and Construction financing, with a minimum check size of $20MM. Their lending portfolio includes industrial, multifamily, retail (case-by-case), self-storage, and student housing sectors.

Pricing is competitive at S+325-350bps, aiming for 55% LTC/ LTV.

The bank emphasizes long-term relationships and requires a deposit with each transaction (5-15% of proceeds), preferring to engage with institutional clients, HNW, and family offices.

They offer non-recourse and recourse lending, with a standard DD process before issuing Term Sheets to ensure reliability through loan closure.

George Smith Partners has identified a capital provider financing senior and stretch senior loans for ground-up construction and development of high-quality self-storage facilities. They offer a fixed-rate, interest-only program with rates in the low to mid-teens. Additionally, they will lend up to 95% of total approved hard and soft cost incurred or advanced commencing at loan closing. Terms are 36 months plus one six-month extension subject to satisfaction of defined milestones including issuance of certificate of occupancy (typically within 18 months). This capital provider lends in the United States and Canada. To close, land must be contributed by the builder with all necessary zoning and entitlements in place.

It is tricky for sponsors and developers to find financing in today’s challenging capital market. We are focused on creative capital stacks to help our clients execute in uncertain markets.

Lately, we have been working with several clients on synthetic ground leases. These can offer a very low relative cost of capital and can, in essence, replace much costlier capital. We’ve seen GL’s work on deals ranging from construction, to bridge to permanent and in deals from $30,000,000 – $300,000,000.

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.