GSPartners
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Volume XVIII | No. 32 | September 1, 2010
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KEY RATE INDICES
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Prime Rate
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3.25%
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1 Month LIBOR
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0.26%
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5 Yr US Treasury
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1.40%
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5 Yr Swaps
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1.65%
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12-MAT
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0.35%
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3 Month LIBOR
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0.30%
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10 Yr US Treasury
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2.57%
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10 Yr Swaps
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2.53%
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11th Dist COFI
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1.75%
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6 Month LIBOR
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0.50%
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30 Yr US Treasury
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3.64%
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| Transactions of the Week |  |
|  | | Transaction Description: | | $5,200,000 Acquisition Financing for Single Tenant GSA Lease in Texas GSP arranged acquisition financing for a brand new 35,000 s.f. United States Geological Society building in a major market in the Southeastern US. The GSA lease has a 20 year initial term but a right to terminate in year 10. The non recourse loan has a 5 year fixed rate term. The lease is gross, with landlord paying property expenses, but the rent increases to match expense increases in future years. Property has office and industrial elements as it is a specialty US Government function. |
Challenge: Single tenant, special buildout |
Solution: Lender comfortable with 5 year term, relatively low leverage and essential nature of the USGS. |
| | Rate: 5.85% | | Term: 5 years | | Amort: 30 years | | LTV: 65% | | LTC: 65% | | DCR: 1.40 | | Prepayment: Defeasance | | Non-recourse | | Lender Fee: 0.50% | | Brokers: Steve Bram, David R. Pascale, Jr. |
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|  | | Hot Money | Southern California Based Fund Looking for Bridge Transactions and Equity This fund has dropped rates and target yields in order to attract business. Looking to fund bridge loans, under $10,000,0000. Leverage is about 60%, lender preferes "compelling story, preferably distressed." Total yield (rate and fees) about 10%. Lender will consider note purchases Transactions must be real estate only (not businesses such as skilled nursing, etc). Note that fund will consider Equity investment behind their own debt. Sample equity terms as follows: Investment Size: $1,000,000-$4,000,000; Co-Invest: Sponsor should have 10%-20% in the transaction (real cash, "skin in the game"); Typical structure: 10% preferred return, 50/50 split, 20% lookback to the equity.
| | | Hot Money | West Coast Capital Source Funding "Mid-Size" Mezzanine and Preferred Equity This program is tailored for refis of maturing loans (where new senior loan proceeds are short). The new money, can be structured as mezzanine or preferred equity. Typical loan size: $2,000,000-$7,000,000. Max LTV: 85%; Min DCR (combined): 1.05; Geographic target: Core markets in western states. Yield targets are in the low to mid teens over a 2 to 7 year term. | | | Hot Money | Single Tenant Non Recourse Financing Fixed rates are dropping to historic lows across the lending spectrum. This nationwide lender is funding single tenant transactions (S& P rated "BB" or equivalent private credit) at attractive rates. Note that lender analyzes non-rated tenants with their own model. Loan term is equal to remaining lease term. Loan Size: $2,000,000- $20,000,000; Rates: 5.50-7.00% fixed; Max LTV: 75%; Min DCR: 1.20; Amort: 25 years; Lender Fee: Par | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, asset sales or advisory services please contact your GSP representative or Todd August, Chief Operating Officer, at (310) 867-2995 or taugust@gspartners.com. | | | Join Us on LinkedIn | George Smith Partners is now on LinkedIn. Click here to join the George Smith Partners group to get access to current conversations and topics plus topical newsfeeds. | | | Speakers Corner | Marc Schillinger will be speaking at the Real Estate Syndication Summit on September 24 at the Luxe Hotel in Brentwood (West Los Angeles, CA). For more information, click here. | | | Come Grow With Us | George Smith Partners is expanding its team of top-notch mortgage brokers/originators. We offer highly competitive compensation and an excellent environment in which to work, learn and be supported. GSP provides its employees with cutting edge market information, resources for identifying the best capital sources for each transaction, training opportunities and peer support whenever it is needed. We invite you to consider a career with George Smith Partners. Please direct confidential inquiries to Todd August, Chief Operating Officer, at (310) 867-2995. |
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©2010 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
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