This week, Bryan Shaffer of George Smith Partners (GSP) originated $4,200,000 repositioning loan for 196 Unit SRO Multi-Family Apartments with Ground Floor Retail. GSP?s client required capital to complete the renovation and redevelopment of an affordable SRO Multi-Family Apartment Building with ground floor retail located in Downtown Los Angeles. The high-profile property had a troubled past and the new owner wanted to completely rehabilitate the project. The project was completely vacant and undergoing major construction. Under the extremely challenging conditions, Bryan was able to originated a 10-year year term loan priced at 6.25% fixed with 30 year amortization and a pre-payment penalty declining over the first 3 years.
The major challenge was that most lenders would not finance SRO apartments, especially projects that are 100% vacant, undergoing major construction and have been encumbered by the City of Los Angeles Rent Escrow Account Program (REAP) for the prior owners not providing safe living conditions. In addition, it was critical to the sponsor that construction process was not delayed by the financing process.
?I enjoy challenging projects, where my skills add value. For almost 25 years, I have been involved in every aspect of commercial real estate finance, development and operations, so I enjoy assignments where my experience can solve my clients? capital requirements. I think it not only that George Smith Partners is in the market every day, but that we understand how to underwrite the transactions to lender standards, identify upside and manage the loan in the due diligence, appraisal and closing process,? said Bryan Shaffer of George Smith Partners.
?We developed and executed a detailed strategy including upfront underwriting, due diligence and analysis of value after construction and rehabilitation,? Shaffer explained. He used his extensive market expertise and lender relationships to identify a Southern California based lender with special affordable multi-family housing mission and unique loan programs that would allow the un-stabilized project to receive long term market rate financing. He helped the lender see beyond a vacant troubled property and understand the sponsors vision and future value. During the application process, Bryan managed every step of the due diligence, appraisal and closing process to ensure the loan closed on time.
George Smith Partners (GSP)
George Smith Partners is a premier nationwide advisor between users of capital and providers of capital. Although headquartered in Los Angeles, fifty percent of our work is on properties located outside of California. Sophisticated developers and investors value our ability to custom-tailor closings that deliver the smartest money. We arranged yearly over $3.5 billion in commercial financings with over 100 different capital sources.
Bryan Shaffer
At GSP, Mr. Shaffer focuses on delivering solutions to address his clients? real estate capital requirements and arranges structured financing for multifamily and commercial properties, including acquisition, refinance, construction, bridge and permanent loans, mezzanine and participating debt, and joint venture equity. For over 20 years, he has been active in the industry with a track record of success with over $4 Billion of transactions. He has completed transactions in the multi-family, office, retail, industrial and hospitality sectors as well as specialized experience with complex data centers, healthcare/medical and senior facilities.
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