January 23, 2019
George Smith Partners is working with a Co-GP equity provider for multifamily, condominium, office, hospitality, mixed-use, retail, student housing and industrial sectors. The capital provider will enter into joint ventures during pre-development periods and will take entitlement risk. They can be used to provide equity for ground-up development, build-to-core, asset repositioning, distressed construction projects and non-performing construction loans. Looking for value-add and opportunistic ground-up opportunities in top 25 markets nationwide. Target equity investments between $15-$50+ million for total capitalizations north of $100 million ranging from 50% – 90% of the required GP equity. A construction completion guarantee will be provided where their GC is project managing.
January 15, 2019
George Smith Partners identified a regional capital provider lending on transactions up to $16,500,000 on a recourse basis. With the ability to advance up to 80% of purchase price on ground-up construction and luxury SFR’s, Condos and Multifamily, pricing is 1.25-1.50 over Prime for a 24 month term. Other offerings include earn-outs and value-adds for commercial loans, SRO’s, and TIC’s, as well as cookie-cutter industrial, office and industrial.
Tenancy-in-Common (TIC) owners of a multi-unit property have exclusive usage rights to a particular area of the property. They own percentages in an undivided property, rather than particular units. The deeds reflect only their ownership percentages. Each owner has the right to use a particular dwelling, which is reflected in a written contract signed by all co-owners. This must not be confused with condominium ownership.
The ability to receive “Fractional Loans,” which enables co-owners to obtain individual loans, significantly reduces the risk of co-ownership. Fractional Loans enable each co-owner to have an individual loan. The loan is secured by the co-owners share of percentage in the property so if one co-owner should default it does not impact the other co-owners. This lender finances the acquisition and development/conversion of multifamily properties into TICs, and is one of the only lenders in California offering Fractional Loans to individual TIC owners.
January 9, 2019
George Smith Partners is working with a national capital provider providing agency and non-agency small balance loans on multifamily assets from $1,000,000 to $7,500,000 on a non-recourse basis. Rates start at 4.79% for terms from 5 years to 20 years. Loans are structured case-by-case for stabilized assets allowing for longer Interest Only terms and/or step-down prepayment. A recently executed application included two-years IO and a 5,5,4,4,3,2,1 prepayment schedule priced at 4.79% fixed for seven years. Leverage for multifamily is 80% of total value.
December 19, 2018
George Smith Partners is working with a national portfolio capital provider that is structured with no pre-payment penalty. Loan origination fees of 0.50% for transactions up to $50,000,000 and there are no exit fees. Non-recourse funding up to 60% of cost, rate is set at acceptance of LOI, DSCR requirement of 1.45-1.50x and most loans close within 60 days of pre-screen. Higher leveraged options are available under similar pricing with a personal repayment guarantee. Properties must be in sub-market areas with communities of 100,000+ population.
December 12, 2018
GSP is working with a capital provider that will provide recourse fixed rate financing to 75% of cost (90% + on build to suits) including, acquisition, improvements, development, pre-development, discounted payoffs, bankruptcy exit, purchase of notes and cash-out. Fixed rate pricing starts at 9% for terms up to 1 year with extension options up to 3 years for Multifamily, Office, Industrial, Retail, Special-Use, Entitled Land and Construction. Loan sizes range from $1,000,000 to $10,000,000 for transactions located in California, Arizona, Nevada, New Mexico and Washington.
December 5, 2018
George Smith Partners identified a capital provider offering fixed-rate debt for transactions from $2,000,000 to $15,000,000 specializing in the 10 western states. This lender will finance Industrial, Manufactured Home Communities, Mixed Use, Multifamily, Office, Restaurant, Retail, Self Storage, Medical Office, Single-Tenant Net Lease. No pre-payment penalties, 3 years’ interest only, 30 year amortization and terms up to 15 years on partial or non-recourse loans.
November 21, 2018
George Smith Partners identified national bridge lender advancing floating rate transactions for all transitional property types from $10,000,000 to $100,000,000. Funded up to 70% of future stabilized value, floating rates start at LIBOR + 275 for a one year term plus options. Sub-1.0 coverage (ie below break-even cash flow) will be supported with a lender funded interest reserve. All transactions are pre-payable with no penalty. All executions are non-recourse beyond standard carve-outs.
November 14, 2018
George Smith Partners is funding bridge and stabilized transactions from $500,000 to $10,000,000 on a recourse basis in California, Arizona, Nevada, Washington and Oregon. This portfolio lender offers the ability to finance the senior note as well as record a second trust deed behind their own first to be used as a revolver. As the credit facility is secured, there is no 364 day “clean-up” required. Interest is only paid on the outstanding balance if any and there is no stand-by fee or utilization fee. Revolver rates start at 6 month LIBOR for terms up to 30 years.
November 7, 2018
George Smith Partners is working with a national bridge lender funding fixed-rate reposition transactions from $15,000,000 to $75,000,000 in primary and secondary markets. Bridge rates start at 5.25% fixed for terms up to three years. In today’s rising interest rate environment, many investors and developers prefer fixed rate bridge options in order to mitigate the risk of rate fluctuations and avoid purchasing a rate cap agreement at closing. Leverage for Office, Multifamily, Industrial, Hotel, Self-Storage & Grocery Anchored and High Street Retail up to 80% of cost. The bridge program offers future funding and prepayment with a minimum 12 months of call protection.
October 31, 2018
George Smith Partners identified a private commercial real estate finance company that provides non-recourse mezzanine financing for the acquisition, renovation and development of multifamily properties (with at least 20% of the units classified as affordable) located in the Western U.S. The financing is structured as a tax-exempt private activity housing bonds or 501(c)(3) bond. They can be used on mixed use 80/20 projects, for non-profit corporations, can be subordinate to HUD and Rural Development Loans and can be repaid from the sale of tax credits. With the ability to advance 90% of mezzanine loan programs range from $5,000,000 to $15,000,00. Interest-Only pricing for Acquisition / Rehab ranges from 8% – 10%, compounded monthly and Development ranges from 10% – 12%, compounded monthly.
October 24, 2018
George Smith Partners identified a national “Full Structured” hotel financier funding permanent hotel bridge, mezzanine loans and preferred equity investments secured by hotel assets for acquisitions, recapitalizations, cash-out re-financings, and renovations. Permanent financing up to $50 million; fixed for 20-30 years at 4.5%-6.5% with terms up to 10 years and leverage up to 80% of cost. Bridge debt to $50 million; fixed or floating at 6.0%-9.0% with terms to 5 years and 85% of stabilized value. Mezzanine tranches to $10 million; rates from 12%, Interest only or matched to senior loan. Leverage is limited to 85% of value. Preferred Equity to $10 million; rates between 13% to 20% to 95% of cost. There is no participation for the Pref Equity once their returns are realized.
October 17, 2018
George Smith Partners identified a Co-GP equity provider for multifamily, student housing, senior Independent-living, hospitality, industrial, office (including medical and other uses on a selective basis), self-storage and mixed-use sectors. Looking for value-add and opportunistic opportunities (mostly 90/10 or 95/5 deals) in primary and secondary markets nationwide. Target equity investments between $1-10M per deal with an investment period of 2 to 10 years.