| Transaction of the Week |  | |  | | Transaction Description: | | $1,045,000 75% LTC Loan for a Class-C Multi-Family Asset in Tertiary Market. GSP arranged the 75% LTC acquisition loan from a regional bank for the purchase of a multi-family property in a tertiary Texas market. The loan is fixed for 5 Years and priced in the low-5% range. The property is 100% leased at slightly below market rents. The main obstacles to overcome were the transaction size, asset quality, and non-local first time multi-family purchaser. GSP was able to identify a local institutional lender who understood the specific sub-market and the asset type. GSP also emphasized the borrower's experience with other real estate properties and helped the lender realize the benefits of establishing a relationship for future acquisitions. This lender also agreed to allow the borrower to self-manage, netting lower operating expenses and a higher return on investment. | | | Term: 5 Years | | LTV: 75% | | Recourse | | Lender Fee: 1% | | Broker: Eli Wexler | | | |  | | | | Non-Recourse HOA Financing George Smith Partners identified a 113 year-old financial institution lending to non-profit Home Owners Associations (HOAs) with a 100 door minimum. Their collateral is similar to a UCC filing and is not a Deed of Trust. The self-liquidating loan is repaid through the monthly HOA fees and does not carry a warm-body repayment guarantee. This national program may provide funds for the addition of new amenities or capital intensive upgrades and/or repairs for the housing community. | | | | Hot Money | Non-Recourse Faith-Based Lender. George Smith Partners is working with a National Bank currently funding construction, bridge/reposition and permanent loans to non-profit faith based organizations on a non-recourse basis. All faiths will be considered for ground-up, reposition or permanent funding of churches, temples, schools, hospitals/medical facilities that have a religion-affiliated use. Non-profit organization that can demonstrate a minimum of 250 giving units will be considered. The collateral does not need to be on the primary campus but must be faith-related. Loan limits range from $1,000,000 to $25,000,000. | | | 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 | | | Speakers Corner | Managing Member Steve Bram will be a panelist at the annual "How High Is The Sky" conference on Thursday March 29th to be held in Century City. The morning symposium will review capital providers and lending terms, lender responces to problem loans, Westside Commercial outlook & trends and the Santa Monica spillover factor. For registration and more information please click here or call The Century City of Chamber of Commerce at (310) 553-2222. | |
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