Dealmaker: George Smith Partners Secures $54M for Hotel, Retail

George Smith Partners, Los Angeles, secured $54.2 for California hotel and retail properties.

In San Francisco’s Mid-Market neighborhood, GSP Principal/Director Malcolm Davies, Vice Presidents Evan Kinne and Zachary Streit and Assistant Vice Presidents Alexander Rossinsky and Rachael Lewis arranged a $45 million construction take-out and bridge refinance for a 131-key luxury hotel.

The proceeds refinanced more expensive construction financing that included a large mezzanine facility. The former loan also included an interest reserve, tax and insurance reserve and a working capital reserve.

In addition, the existing capital stack included Historical and New Market Tax Credits and EB-5 capital, which added complexity to the transaction. The GSP team sourced a lender who understood the complex existing capital stack and recognized the value of the hotel’s positioning and sponsorship.

In Orange County, Calif., George Smith Partners Principal/Director Bryan Shaffer, Vice President Max Lehrman and Analysts James Long, David Danesh and Jonathan Dunn secured a $9.2 million private money bridge loan that enabled the renovation and re-tenanting of an unanchored retail shopping center.

The new loan included $850,000 for future tenant improvements, renovations and leasing commissions. Shaffer said the shopping center renovation had experienced significant construction cost overruns and needed another $850,000 for completion. Several tenants in the process of upgrading their spaces had unfinished renovations in place.

The sponsors needed to close the loan within a two-week time frame. The non-recourse interest only loan closed in five days, Shaffer said.

The one-year loan with two one-year extension options and priced at 7.9 percent.