Dealmaker: George Smith Partners Arranges $57M Construction Financing
George Smith Partners, Los Angeles, arranged $56.5 million in construction financing to develop a mixed-use coastal infill project in Solana Beach, Calif.
When completed, the property will include 55,000 square feet of office space, 9,000 square feet of retail space and 25 rental apartment units.
Located one block from the beach and the Cedros Avenue Design District in San Diego County, the two-story development will be the largest mixed-use project built along Highway 101 in the past three decades.
GSP Principal/Managing Director Malcolm Davies said the company was able to identify capital who not only understood the value of all three components and the subsequent demand but also the ability of the sponsor to execute on the intended business plan.
Davies, Senior Vice Presidents Zachary Streit and Alexander Rossinsky, Vice Presidents Drew Sandler and Aiden Moran, Assistant Vice President Brandon Asherian and Analyst Ben Tracy advised on the transaction.
The firm also secured $5.2 million to refinance a five-tenant Los Angeles retail center. The five-year fixed-rate loan closed at 3.50 percent did not require any holdbacks.
GSP noted retail property values have declined in some markets. To substantiate property value, the firm emphasized the property’s infill location and credit tenants. All five tenants were considered essential businesses and remained open during the pandemic. The borrower also provided three months of collections data to show that the tenants were consistently paying rent.