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George Smith Partners is actively funding bridge/reposition transactions for core assets from $10,000,000 on a nationwide basis. The non-recourse loans are sized to 1.0 debt coverage, 85% of value and an “As Is” 6% debt yield. Priced at LIBOR + 4.75, coupons carry a 5.50% floor. Interest reserves may be funded for a below break-even coverage by exception. This capital provider freely admits they are not the least expensive bridge provider but their real estate ownership affords them to underwrite with a larger focus on the collateral rather than the non-recourse guarantor, and deliver a higher execution as applied for.
