George Smith Partners Arranges $105M in Financing for Multifamily Properties

George Smith Partners arranged $105 million in construction financing for client GLJ Partners, for two new multifamily developments in the Inland Empire region of California, according to Vice President Malcolm Davies. Davies was assisted by George Smith Partners’ Vice President Michelle Lee in these transactions.

The transactions include $52 million in construction financing for Oak Springs Ranch, a to-be-built 312-unit multifamily property in Wildomar, Calif. and $53.7 million in construction financing for The Paseos, a to-be-built 385-unit multifamily property in Montclair, Calif.

Upon completion, the class-A Oak Springs Ranch community will consist of 312 units across 18 buildings. The land is fully-entitled, permitted and shovel-ready for development.

According to Davies, GLJ Partners worked with a joint venture partner to acquire the land in 2008. The project required at least $52 million of proceeds in order to move forward. In addition, the client required financing which was guaranteed solely at the entity-level, providing protection to the client’s principals.

The financing was secured from two lenders with one placing $35 million in construction debt and the other providing $17 million in mezzanine construction debt financing, according to Davies.

Davies also arranged $53.7 million in construction financing on behalf of GLJ Partners for the 385-unit class-A apartment community called “The Paseos” in Montclair, Calif.

The construction financing was LIBOR based and interest-only loan underwritten to a 65 percent loan-to-cost ratio and a 1.2 stabilized debt coverage ratio.

Davies had previously arranged $25 million in joint venture equity for the acquisition of the to-be-built multifamily property in early 2012.

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