Dealmaker: George Smith Partners Places $15M Bridge Loan

(Illustration courtesy of George Smith Partners, Los Angeles.)

George Smith Partners, Los Angeles, placed a $14.5 million bridge loan for the lease-up of a newly constructed 54-unit apartment building in Los Angeles.

GSP Managing Director & Principal Steve Bram, Senior Vice Presidents David R. Pascale Jr. and Allison Higgins and Vice President Nick Rogers arranged the financing.

The new loan refinanced the construction loan at maturity to give the borrower time to stabilize the property. GSP sourced a lender that provided cash-neutral financing and fixed the interest rate for the duration of the loan term. The financing is open for prepayment at any point throughout the loan term with at least 12 months interest paid.

The two-year interest-only financing included one 12-month extension. The non-recourse loan closed at a 70% loan-to-value ratio and a 7.75% interest rate.