May 17, 2018— George Smith Partners, one of the nation’s leading commercial real estate capital market advisors, has successfully arranged a high-leverage $41,000,000 bridge loan for the acquisition of a 71,000 square-foot office asset in the Silicon Valley from an institutional seller, according to Malcolm Davies, Principal/Managing Director at George Smith Partners.
“We were able to fulfill this requirement in the required 60-day period available on behalf of Vahe Tashjian of Dutchints Development, the buyer, for whom this acquisition is the largest to date in his portfolio,” Davies explained. “Our entrepreneurial approach makes us the right partner for entrepreneurs, as I myself have been a developer in the past and am clear on the need to meet multiple financing requirements within a specified timeline.”
“In this case, George Smith Partners was able to secure financing for 24-months at an 85 percent loan-to-purchase price, in order to assure accretive equity returns for our client,” Evan Kinne, Vice President at George Smith Partners added. “This required our team to canvass the market with multiple potential capital stacks, including mezzanine and preferred equity for the appropriate lender who not only understood the market, but also recognized the strength of this asset within the market.”
The financing was arranged by George Smith Partners’ Davies, along with Vice President Evan Kinne, Vice President Zachary Streit, Assistant Vice President Alexander Rossinsky, and Assistant Vice President Rachael Lewis.
Tashjian notes that George Smith Partners was in application in approximately three weeks after getting the assignment and closed within the short escrow period.
“The team at George Smith Partners was able to assist me in creating a smooth acquisition process with a very sophisticated seller, which has strengthened my position in the industry as our firm continues to seek larger assets from this and other institutional owners,” Tashjian added.
George Smith Partners secured the loan at a rate of LIBOR + 5.62 percent. The non-recourse loan is interest-only for the 24-month term.