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| Volume VIII, No. 45 |
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December 3, 1999 |
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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
8.50% |
| 11th District |
4.666% |
| 3 Mo. T’s (YTM) |
5.24%
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| 6 Mo. T’s (YTM) |
5.52% |
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| 5 Yr. U.S. T’s |
6.079% |
| 7 Yr. US T’s |
6.11% |
| 10 Yr. US T’s |
6.16% |
| 30 Yr. US T’s |
6.25% |
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| LIBOR - 1 mo. |
6.48% |
| LIBOR - 3 mo. |
6.12% |
| LIBOR - 6 mo. |
6.07% |
| LIBOR - 1 yr. |
6.29% |
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| Tier 2+ (80% LTV) |
7.95% |
| Tier 3+ (65% LTV) |
7.80% |
| Tier 4+ (55% LTV) |
7.60% |
| 10 yr. term/30 yr. amort. |
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TRANSACTIONS OF THE WEEK
$11,600,000 Construction Loan (85.00% of Cost, $395 per s.f.) for Retail Redevelopment of Historic Chasen’s Site The site on Beverly Blvd. and Doheny is the location of the original Chasen’s restaurant (which has moved to the Beverly Hills triangle). The proposed build to suit development is for a 29,410 s.f. Bristol Farms, a high-end luxury supermarket. The project architectural plans intend to retain the distinctive Chasen’s façade and also incorporate the legendary high backed leather booths for use in the Bristol Farms café. Terms: (1) Rate: Prime + ½%; (2) LTV: 75%/Loan to Cost: 85%; (3) Term: 12 months, with two 6-month extensions; (4) Lender Fee: 0.75%, 0.25% for each option period. (Peter Smyslowski, Gary E. Mozer)
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| $37,825,000 Construction and Mini-Perm For The Colony at River Ranch: Construction financing has been arranged for G.H. Palmer Associates for Phase I of The Colony at River Ranch, 304 units (100% townhouses), to be constructed in the Santa Clarita Valley off of the I-14 Fwy. When completed, the project will comprise 752 units. The developer acquired the land more than 10 years ago and had created significant land equity through the entitlement process. G. H. Palmer is the largest owner of apartment units in the Santa Clarita Valley. Underwriting: The loan, at $115,132 per unit, was underwritten using projected market rents and expenses including the developer’s current market experience, 5% stabilized vacancy, 1.15 DCR and a 9%/30 year stress constant, not to exceed 75% LTV. Client Relationship: GSP has arranged $140,000,000 in total loan placements (including $87,825,000 in construction financing in Santa Clarita) over the last two years. Terms: (1) Amount: Construction component of $34,000,000 and a co-terminus $3,825,000 land loan on Phase II; (2) Loan-to-Cost: 100% of construction and soft costs other than land; (3) Term: 3 years, plus 2 each 1-year renewal options; (4) Origination Fee: 9/10ths of 1% on construction and 1% land loan; (5) Rate: 30-day LIBOR + 2.25%/land loan @ 2.5% spread; (6) LTV: Not to exceed 75%; (7) Recourse; (8) Extension Provisions: 2 ea. 1 year extensions @ ¼ pt. each, 30 year amort. and @1.20 DCR on underwritable cash flow at then prevailing rates. (Gary M. Tenzer, David Buxton and George Smith) |
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GSP/RIFKIND CAPITAL ADVISORS UPDATE
$50,000,000 Available for Year-End Closings….
Use GSP/Rifkind’s Quick-Close Capability to Create Value In Your Transaction
$7,560,000 (100% Cash Out) for NYSE Traded Corporate Headquarters in California: The property consists of 2 adjacent parcels with 2 single-story buildings containing 240,000 s.f. of extremely specialized manufacturing (66,000 s.f. of "clean rooms") and office facilities on 25 acres. GSP/R provided loan docs 3 working days after receiving the loan request. No new third party reports were required as the borrower provided a preliminary Phase 1 report. Terms: (1) Rate: 10%; (2) Term/Amort: 5 years/interest only; (3) LTV: 60%; (4) No prepayment penalty; (5) Non-recourse.
$15,500,000 Land Loan: The parcel consists of 40 acres of land approved for industrial development. This non-recourse loan was additionally collateralized by shares in a private corporation.
$800,000 for Phase 2 of Estate Lot Purchases: As previously reported in FinFax, our borrower is developing estate homes on the Marina Del Rey peninsula. GSP/R has just provided $800,000 in acquisition financing for 4 lots with no plans or permits pending. The 65% LTV loan is non-recourse and prepayable at any time.
For more information on GSP/Rifkind Capital Advisors’ lending programs, please contact David Rifkind (ext 109, drifkind@gspartners.com) or David Ellis (ext 216, delis@gspartners.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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