David Rifkind is GSP Newest Partner

David Rifkind is GSP Newest Partner: Mr. Rifkind joined GSP Oct. 1997 to head the private placement division, with the creation of GSP/Rifkind Capital Advisors. He brings 13 years of solid experience in the structuring of creative transactions primarily using private capital sources that he has developed. He formed Forecast Financial in 1992 and he originated in excess of $350,000,000 in privately placed commercial mortgages nationally for virtually every real estate category including: commercial, industrial, land, portfolio note purchases, RTC and FDIC work-outs, bankruptcy priming loans and sub prime and default note purchases. Notable financings have included California landmarks such as the Queen Mary and Union Bank of California Tower in Long Beach, Sunset Strip venues including Billboard Live and The Whisky Ago Go, and the original RCA recording studios and office towers in Hollywood. GSP/Rifkind Capital Advisors: Mr. Rifkind leads a team of professionals narrowly focused on similar creative real estate financings.  He is known for fast financings for real estate projects in the $1M to $50M range, often in days. For more details on GSP/Rifkind programs, contact David Rifkind (ext. 109) or drifkind@gspartners.com.

TRANSACTION OF THE WEEK!!!

Who Says Conduits Aren’t Flexible? $6,100,000 Apartment Portfolio Refinance (3 Separate Loans) With 12 Year Term/27 Year Amort.: Our borrower requested the unusual term for these three class B properties. He acquired these under performing properties in mid 1998 and has repositioned them to 98% occupancy. Due to the assets’ age and lack of stabilized operating history, the portfolio would typically receive a 25 year amortization. GSP negotiated a 27 year amortization in order to attain the necessary loan proceeds. The Portfolio: (1) $1,140,000 Loan Amount: 48 units (25 bachelor/23 1BR), 1960 built, Long Beach area; (2) $4,300,000 Loan Amount: 162 units (138 1BR, 24 2BR), 18 separate buildings all with separate street addresses on a contiguous lot, 1956 built, downtown L.A. adjacent; (3) $1,760,000 Loan Amount: 52 units, 11 buildings on 1.7 acres, 1963 built, San Gabriel Valley. Loan Terms (for all): (1) Rate: 12-year interpolated T + 2.40%; (2) Term/Amort: 12/27; (3) LTV: 75%; (4) DCR: 1.28; (5) Non-recourse; (6) Lender Fee: Par. (Steve Bram, Brad Black)

Goldman's Dudley Sees Upward Bias on Rates and Probability of Another Fed Increase: Bill Dudley, Goldman Sach's Managing Director of U.S. Economic Research, presented a paper at the Milken Institute on Thursday September 30th. Dudley forecasts continued upward pressure on rates because of the continued strength of the U.S. economy at levels exceeding what he believes are the Fed's comfort level. While there is still no confirmation of inflationary factors Dudley believes that the Fed feels the warning signals are lining up. He does not see a rate increase at the October 6^th meeting. Depending on October indicators, he thinks there is a 60:40 probability of a November increase. He foresees no increase in December because the Fed does not want to be the "Grinch that stole Christmas". Longer term he sees no fundamentals indicating rates returning to levels that existed at the start of this year. (George Smith - Attendee)

Why is 3-Month LIBOR Up To 6.09%? For most of the year, the 3-month LIBOR rate has hovered around 5.50%. On Tuesday the 3-month LIBOR jumped from 5.508% to 6.078%, today it is 6.09%. The reason for the big jump is because Tuesday’s rate indicated a LIBOR contract effective through December 31, 1999. Every year there is higher than usual demand for capital at year end. This year, Y2K jitters are exacerbating that demand. Did 6-Month LIBOR Spike in Late June of 1999? Yes, 6-month LIBOR on June 28^th set at 5.46375%. On June 29^th, which was the first contract running to December 31, 1999, the rate jumped to 5.62250%. What Will Happen to 1-Month LIBOR in November? On November 29^th, 1-month LIBOR will reflect a funding rate that will take a borrower through year-end. Right now, the futures market indicates that 1-month LIBOR will set on November 29^th at about 6.51%. (David R. Pascale, Jr., thanks to Jim Haugen in the Wells Fargo Research Department)