The Cheapest Capital You Never Saw: The best rate on your deal is behind a door most advisors can't open
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Long-term fixed and floating rate loans from life companies, banks, agencies, and CMBS lenders
Permanent financing is long-term debt secured by stabilized commercial real estate, typically with terms of 5 to 30 years. Unlike short-term bridge or construction loans, permanent loans are underwritten primarily on the property's current cash flow, providing stable, predictable debt service for investors planning to hold assets over extended periods.
George Smith Partners arranges permanent financing from all major capital sources: life insurance companies, Fannie Mae and Freddie Mac (for multifamily), CMBS conduit lenders, banks, and credit unions. Our role is to identify the optimal lender based on your property type, leverage requirements, prepayment flexibility needs, and overall investment strategy.
Life companies provide the most competitive rates for high-quality stabilized assets in strong markets. They focus on low-leverage, relationship-oriented transactions with sophisticated borrowers.
For multifamily properties, Fannie Mae and Freddie Mac provide highly competitive rates with high leverage and attractive terms not available from other sources.
CMBS conduit loans offer higher leverage and competitive rates across all property types, with standardized terms and non-recourse execution.
Banks provide flexibility in structure and prepayment that other lenders cannot match, particularly valuable for borrowers who may need to sell or refinance before maturity.
$5 million to $500+ million
55-80% depending on lender type and property
5 to 30 years
1.20x - 1.35x minimum DSCR
Fixed or floating rate options
25-30 years, interest-only options available
Varies by lender: defeasance, yield maintenance, or step-down
Nationwide
We have active relationships with every major permanent lending platform in the country. This comprehensive coverage ensures we identify the best execution regardless of which capital source is most competitive for your specific transaction.
We run efficient, competitive processes that generate multiple quotes, allowing borrowers to compare terms and leverage competition to achieve optimal pricing and structure.
Beyond finding the lowest rate, we help borrowers think strategically about prepayment flexibility, assumability, and other terms that impact long-term investment value. The lowest-rate loan isn't always the best loan.
Most permanent lenders require a minimum DSCR of 1.20x to 1.35x, meaning net operating income must exceed annual debt service by at least 20-35%. Higher leverage loans typically require higher DSCRs, and some lenders also impose debt yield requirements of 8-10%.
CMBS loans offer higher leverage (up to 75% LTV) and competitive rates but have standardized terms and significant prepayment restrictions. Life companies offer lower leverage (55-65% LTV) but more relationship flexibility, and often better rates for qualifying borrowers and properties.
Yes, interest-only periods are available from most permanent lenders. Agency loans commonly offer 5-10 years of IO, and life companies and CMBS lenders also provide IO, typically for 2-5 years depending on leverage and property quality.
Typical closing timelines range from 45 to 90 days depending on lender type and transaction complexity. Bank loans often close fastest, while CMBS and life company loans typically take 60-75 days due to more extensive underwriting requirements.
Our team can help you secure optimal permanent financing for your stabilized property.
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