George Smith Partners Secures Loan for New Mid-Market Project
- Sep 23, 2016
By Alex Girda
San Francisco—George Smith Partners recently announced it has arranged ground-up construction financing for a mixed-use asset in San Francisco’s Financial District. Totaling $34 million, the financing measure was arranged on behalf of developer Encore Capital Management, by George Smith Partners representatives Jonathan Lee, David Stepanchak and Adam Candler.
Encore is developing a 90-unit condo component above ground-level retail in an area of San Francisco that is claiming some of the highest prices in the entire metro. “Downtown San Francisco offers a lifestyle that is appreciated by a myriad of demographics, from Millennials to Baby Boomers, and we were successful in demonstrating that widespread demand to lenders,” Lee said.
Designed to appeal to entry-level buyers, the units will be priced below the daunting $1 million mark that has a tendency to alienate potential homeowners. Located in the heart of the Financial District in San Francisco’s Mid-Market, the project will feature a commercial component destined for use as a restaurant that could be split for two different users.
In spite of current market conditions that find the city in flux due to some affordability problems, George Smith Partners managed to secure a financing measure that could help the development move closer to reality. The company secured a non-recourse construction loan with only a completion and carve-out signature. The loan was priced at LIBOR plus 400 with a three-year term, and includes an option for one additional year.
Rendering courtesy of Encore Capital Management