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| Volume VIII, No. 47 |
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December 17, 1999 |
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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
8.50% |
| 11th District |
4.666% |
| 3 Mo. T’s (YTM) |
5.42%
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| 6 Mo. T’s (YTM) |
5.77% |
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| 5 Yr. U.S. T’s |
6.20% |
| 7 Yr. US T’s |
6.25% |
| 10 Yr. US T’s |
6.29% |
| 30 Yr. US T’s |
6.38% |
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| LIBOR - 1 mo. |
6.46% |
| LIBOR - 3 mo. |
6.14% |
| LIBOR - 6 mo. |
6.12% |
| LIBOR - 1 yr. |
6.38% |
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| Tier 2+ (80% LTV) |
7.96% |
| Tier 3+ (65% LTV) |
7.81% |
| Tier 4+ (55% LTV) |
7.61% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK
$8,200,000 Two-Phase, Non-Recourse, Prepayable, Fee Simple Purchase/Reposition Financing for Southern California Grocery-Drug Anchored Shopping Center: Our borrower owned the leasehold interest in a 94,000 s.f. Ralphs/Rite-Aid anchored center built in 1961. The anchors have occupied the center since 1964. There are 11 "in-line" tenants, a mix of local businesses including 3 restaurants. The Financing, Phase I: $5,000,000 to purchase the fee simple interest from the ground lessor (100% of cost, 56% LTV), Phase II: $3,200,000 for major renovations including: (1) Expansion of the Ralphs from 30,000 to 52.000 s.f., (2) Rehab of the façade, parking lot, landscaping. The loan provides 100% of the rehab costs and is structured as a series of monthly disbursements. The total financing of $8,200,000 represents a 65% loan to stabilized value. GSP arranged financing with a local portfolio lender with a streamlined closing process, minimal documentation, and inexpensive closing/processing fees. GSP works directly with the head of the real estate division, who has a long-standing reputation for closing the loans on the terms applied for. GSP analyzed the borrower's financing needs and found a structure which provides maximum flexibility. Terms: (1) Rate: 10 yr. CMT + 2.25% (yr. 1 is fixed at 8.00%, thereafter reset quarterly); (2) Term/Amort: 10/25; (3) LTV: 65%; (4) DCR: 1.40; (5) Prepayment Penalty: 1% in yrs. 1-3, par thereafter; (6) Non-recourse; (7) Lender Fee: Phase I: par, Phase II: 1 pt. (payable in 18 months). Upon completion of the renovation work and stabilization of the new Ralph's space, the property will be positioned for permanent fixed rate financing. (George A. Smith, Michael Schwartz) |
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GSP/RIFKIND CAPITAL ADVISORS UPDATE
Yet Another Land Loan!!!
$13,000,000 for 200 Acres of Land Within an Existing Industrial Park: This Northern California submarket is located in an "edge" community located in the path of development. Challenges to the financing included understanding an area where absorption is slow at present, but is anticipated to accelerate in coming years. The 200 acres represent several contiguous parcels in a master planned office and office/warehouse complex. The purpose of the financing is to retire existing debt and unlock appreciated equity for new acquisitions. Terms: (1) Rate: Prime based; (2) Term: 18 months; (3) Amort: Interest only. (David Rifkind, Steven Hamermesh, David Ellis)
Use GSP/Rifkind's quick-close capability to create value in your transaction. For more info., contact David Rifkind (ext 109, drifkind@gspartners.com) or David Ellis (ext 216, delis@gspartners.com )
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HOT MONEY!
National Institutional Lender Providing One Stop Shop for Equity and Debt: This lender is seeking to provide equity capital in the amount of $1,000,000 to $5,000,000 in commercial real estate joint ventures. Eligible product types include: Apartments, industrial, office, grocery anchored retail. Lender will provide up to 85-90% of the required equity, expecting a 10% preferred return, with a 50% participation in cash flow and net sales proceeds, and a 17% lookback IRR. In conjunction with the equity contribution, they will provide floating rate debt typically priced at LIBOR + 2.25%-2.50%.
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SPEAKER’S CORNER
George Smith will be moderating the Finance Panel at Real Estate Conference Group's "Real Estate 2000… Looking to the Millennium"; Date: January 21, 2000; Location: Century Plaza Hotel (Los Angeles); Keynote Speakers: (1) Sam Zell, Chairman, Equity Group Investments, Inc.; (2) Governor Pete Wilson, Managing Director, Pacific Capital Group. For more information, call (310) 285-5327 or go to www.realestateoutlook.com. |
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| * GSP is the exclusive L.A. correspondent for ARCS Commercial Mortgage, the nation's largest FNMA/DUS originator. |
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