| Transactions of the Week |  | |  | | Transaction Description: | | $13,000,000 Hotel Bridge Loan GSP arranged a bridge loan for the refinance of a seller carry-back plus "PIP" (Property Improvement Plan) of a flagged hotel in an industrial-centered section of Los Angeles. The bridge loan allowed the Borrower to replace the existing loan at a lower rate and provided additional funds for the hotel's capital improvements. |
Challenge: The Sponsor purchased the 200+ room hotel post-foreclosure in 2010. The previous operator poorly managed the asset causing occupancy and daily rates to fall. The bank foreclosed and our client purchased the hotel at a new, discounted basis from the original note. The foreclosing bank agreed to carry back 50% of the purchase price with the balance in cash. Because the property changed hands, the hotel franchisor required the new Sponsor to perform a substantial PIP to maintain the flag. With low attractive bank debt currently in the 1st position, our initial assignment was to identify a 2nd Trust Deed lender to finance the capital upgrades. Our lender conversations stalled when an inter-creditor agreement could not be negotiated with the 1st Trust Deed bank. |
Solution: GSP returned to the market and identified a lender willing to finance the entire capital stack at a rate less than the current lender. The ultimate capital stack was substantially lower in rate than the initial A/B structure sought by the borrower. The Sponsor enthusiastically moved forward on the new option and closed the loan paying off the selling bank's first TD and providing additional dollars necessary to complete the PIP and maintain the franchise. | | | Amount: $13,000,000 Rate: L + 275, no floor Term: 36 Months Amort: Interest Only LTV: 60% as-is value DCR: 1.25 (after 18th month) Recourse Lender Fee: 0.75% | | | |  | | Transaction Description: | | Fixed-Rate Acquisition Financing for a Four-Building Apartment Portfolio in Southern CA Shahin Yazdi arranged four self-liquidating loans for the acquisition of a portfolio of apartment buildings in Southern California. The loans are fixed for 5 years at 5.40%, then float 315 over 6 month LIBOR for the life of the loan. The four loans are not cross collateralized or cross defaulted. The Sponsor, an LLC, is made up of multiple members but only the managing member, who owns less than 8% of the LLC, signed the personal repayment guarantee. GSP identified a lender that was willing to underwrite the managing member exclusively. | | | Rate: 5.40% | | Term: 30 Years | | Amort: 30 Years | | LTV: 70% | | DCR: 1.25 | | Broker: Shahin Yazdi | | | |  | | | | Fund Manager $3,000,000 to $35,000,000 A national fund manager is actively originating bridge financing up to 85% of total cost. This capital provider will consider all asset types, including broken condos, and is funding both cash flowing and non-cash flowing assets. The lender will also fund assets that may require significant rehabilitation or reposition construction, renovation, and/or lease-up. No ground-up construction will be considered at this time. The senior secured, non-recourse loans are offered on 1 to 3 year terms, and generally close in 30 days. | | Transaction Size: $3,000,000-$35,000,000 | | Loan Term: 1-3 Year | | Max LTC: 75-85% | | Non-recourse | | Geography: Nationwide | | | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer, at (310) 867-2995 or TAugust@GSPartners.com. | | | GSP is Hiring! | George Smith Partners is looking to fill several positions. Qualified candidates may submit their cover letter and resume to GeorgeSmithPartnersResumes@yahoo.com
The ideal candidate will possess the following:
• 2 or more years experience analyzing, packaging and placing commercial real estate loans and or equity in a brokerage or financial platform.
• Strong analytic and underwriting skills and have a current knowledge of general lender and investor underwriting conventions for CMBS, Life Co., Agency, Bridge and Equity.
• Strong writing skills and significant experience in creating debt/equity offering packages. Presentation skills a plus.
• Working knowledge of ARGUS and high level of facility with EXCEL.
• Knowledge of most commercial property types including retail, office, multi family, hospitality and industrial.
• Must possess an extremely positive attitude and ability to work as part of a high quality, service-obsessed team.
• MBA or advanced degree a plus.
Opportunities offered are to join a highly experienced and renowned production team. Work in a fast paced and diverse CRE financing environment helping to analyze, market and close a wide variety of commercial real estate deals on a national level. You will be interacting with our clients and with the highest levels of the lending and investment community. The successful candidate will become part of the larger Team GSP – one of the most dynamic and storied real estate investment banking firms in the US.
| | | Happy 4th of July! | Due to the July Fourth Holiday, there will be no FINfacts next week. We will resume our normal schedule the following week. Have a terrific Fourth of July! | |
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