In a strategic move to enhance its presence in the commercial real estate finance sector, Los Angeles-based George Smith Partners (GSP) has recently acquired New York’s Clearwater Capital Management. This acquisition marks a significant step for GSP, enabling it to extend its brokerage business into the burgeoning field of Commercial Property Assessed Clean Energy (C-PACE) lending.
Founded in 1992, GSP has an impressive track record, having arranged $60 billion in debt and equity transactions. The addition of Clearwater Capital Management, a firm known for its dominance in the C-PACE financing domain, is seen as a critical step in GSP’s growth strategy.
“The acquisition of Clearwater Capital Management strategically complements our mission to broaden our capabilities and deepen our market penetration in commercial real estate finance,” said Justin Piasecki, president of GSP in a statement. He highlighted Clearwater’s impressive record and expertise in C-PACE financing as essential factors in making it an ideal addition to GSP.
Clearwater, established in 2021 by Jonathan Seabolt, rapidly made a name for itself in the C-PACE sector. The firm notably acquired C-PACE.com in 2021, positioning itself as a key player in a niche market where property owners finance building upgrades through tax bill assessments. In 2023, Clearwater saw $1 billion in financing requests for C-PACE deals, underlining its significant role in this specialized area.
As part of the acquisition, both Seabolt and William Burns, former managing director at Clearwater, will join GSP. They will operate from the firm’s New York City office, with Burns taking on the role of senior director. Burns’ experience as a senior originator at C-PACE lender North Bridge is expected to be invaluable in his new position.
“Merging with George Smith Partners represents a pivotal evolution for Clearwater,” said Seabolt. He expressed optimism about the potential of this partnership to set new benchmarks in innovation and service excellence within the realm of real estate finance.
This acquisition signifies a growth trajectory for GSP and reflects the increasing importance of C-PACE lending in the real estate finance industry. With this strategic move, GSP hopes to continue to make an impact on the market, offering innovative financing solutions in line with the growing demand for sustainable and energy-efficient building practices.
