George Smith Partners Secures Financing for Nine-Property Portfolio

Los Angeles—A nine-property multifamily portfolio recently claimed cash-out refinancing of $33 million. National real estate investment banking firm George Smith Partners secured the financing measure on behalf of a local owner and developer. The team that handled the transaction was headed by company Principal Bryan Shaffer, and included Vice President Jon Shapiro, and Assistant Vice President Max Lehrman.

Bryan Shaffer – Principal, George Smith Partners

The portfolio’s nine properties are located in L.A.’s West Hollywood and Koreatown neighborhoods. The financing measure was arranged by George Smith Partners at 75 percent of the portfolio’s appraised value, and a 1.2 DSCR, with each of the loans set to self-liquidate over the next 30 years. After an initial five-year fixed-rate period, the rates will reset and float at 235 over LIBOR for the remaining 25 year term.

“This transaction was complex, requiring nine separate uncrossed loans to close concurrently with a structure that provided $5 million in return of equity for our client, so the timing of each closing was critical,” Shaffer noted in prepared remarks.

Global policy moves prompted the team to move quickly. “We locked the rate for each loan immediately after Brexit was announced,” Shaffer mentioned, while also pointing out that the team “recognized that rates would dip after that announcement, and we seized the opportunity, anticipating that rates would rise again in the days that followed – which they did.”

Image courtesy of George Smith Partners