Dealmaker: George Smith Partners Secures $46M for Multifamily
George Smith Partners, Los Angeles, secured $46 million in non-recourse bridge financing for a four-property Dallas-area apartment portfolio.
Company Principal/Co-Founder Steve Bram, Senior Vice President David Pascale Jr., Vice President Patrick O’Donnell and Assistant Vice President Huber Bongolan Jr. arranged the interest-only three-year loans with two one-year extension options. The floating-rate loans priced at Libor plus 350-400 basis points depending on the subject property.
The four loans closed nearly simultaneously–three loans closed on a single day.
“This financing was unique because it had four different multifamily properties within one single portfolio,” Bram said. “While there were efficiencies in working with one lender, each property was evaluated on its own merits and diligence had to be collected accordingly.”
Though the properties are well occupied at 97 percent, rents are below the market average, so the sponsor has a renovation plan. GSP worked with the sponsor to increase their renovation budget, then worked with the lender to increase leverage accordingly to retain the sponsor’s original equity participation.
Two of the properties are in Irving, one in Grand Prairie and one near Fort Worth.
GSP also secured $10 million to refinance a single-tenant medical office in Santa Monica, Calif. The asset has a triple-net lease with 14 years remaining. The 15-year fixed-rate loan priced at 4.82 percent with the first five years interest-only. It included a step-down prepayment instead of typical yield maintenance.
GSP Principal/Managing Director Bryan Shaffer, Vice President Max Lehrman, Analyst Meron M. E. Amar and Assistant Vice President Ruben Bohbot made arranged the loan.
