George Smith Partners Arranges $48M in San Diego, San Antonio

George Smith Partners, Los Angeles, structured $40 million in joint venture equity financing to develop The Park, a Class A condominium in San Diego’s Banker’s Hill submarket.

GSP Principal Malcolm Davies and Assistant Vice Presidents Teddy Stutz and Bo Everett closed the deal.

Davies said The Park represents one of only a few new condominium projects to break ground in San Diego since the market downturn. “With this final piece of capital, the project is now fully capitalized and will be embarking on vertical construction,” he said. Financial terms remain confidential.

In San Antonio, GSP placed acquisition and bridge loans totaling $7.8 million for a 150-unit garden community near two of the city’s largest employment centers. The non-recourse loan represents 85 percent of total project capitalization.

GSP Managing Director Steve Bram, Senior Vice President David Pascale Jr. and Assistant Vice President Paul Monsen negotiated a customized LIBOR cap structure to control closing costs and provide adequate protection for both borrower and lender. Floating at five percent over the 30-Day LIBOR, debt service will be due monthly on an interest-only basis for the entire three-year term.

The sponsor plans renovations of $14,000 per unit that will allow rent increases of up to $0.25 per square foot over the next two years.

“This is the third financing arranged by GSP with this sponsor in San Antonio since April,” Bram said. “Locked for the first year, there is a one-point exit fee that will be reduced should the bridge lender provide the permanent take-out.”