George Smith Partners Secures Bridge Loan
- May 27, 2015
GH Palmer Associates found itself in need of bridge financing for the acquisition of the brand new 385-unit The Paseos at Montclair North apartment community in Montclair, Calif., and George Smith Partners came through in a big way. The commercial real estate investment banking firm obtained an $81 million interim bridge loan through GE Capital on GH Palmer’s behalf.
A luxury multi-family property sited on 15.4 acres in San Bernardino County, roughly 35 miles east of Los Angeles, Paseos at Montclair North opened its doors at 4914 Olive St. earlier this year, having been developed by GLJ Partners. GE Capital couldn’t resist the financing opportunity and the transaction became one of its last before being snapped up by Blackstone for $23 billion in April.
“GE liked the sponsor and the property; it was a perfect opportunity for their bridge lending platform,” Gary Tenzer, principal and managing director with George Smith Partners, told Commercial Property Executive. “The property is well located and GH Palmer is a best-in-class owner/operator of multi-family properties in Southern California.”
George Smith Partners has a history with Paseos at Montclair North. In 2013 company principal Malcolm Davies assisted GLJ in the obtainment of $25.7 million in joint venture equity from Canyon-Johnson Urban Funds for the land acquisition for the apartment property, and he also orchestrated $53.7 million in construction financing.
The five-year interest-only loan George Smith Partners secured through GE Capital for GH Palmer came at a rate of 3.23 percent+ 1 month LIBOR, with a loan-to-value of 75 percent.
“When we started working with GE, they were looking forward to building a long-term relationship with the sponsor; at that time, GE didn’t know that they would soon be stopping new loan originations once the Blackstone acquisition was announced,” Tenzer said.