Bank Providing Flexible Floaters

TRANSACTIONS OF THE WEEK!!! - GSP/RIFKIND CAPITAL ADVISORS UPDATE

GSP/Rifkind Capital Advisors arranges alternative financing for real estate owners, developers and entrepreneurs.

$1,620,000 Arranged In 24 Hours To Purchase Partnership Interest: The project is located at "ground-zero" in a California coastal city. Total project cost will be in excess of $50,000,000 for the acquisition and development of a mixed-use project that took years to entitle. Our borrower had a one-time opportunity to buy out various partnership interests at a discount, but subject to an extremely tight timeframe. GSP/Rifkind arranged a loan from a private investor. (David Rifkind, David Ellis, Gary M. Tenzer)

$6,800,000 Bridge Loan For Land Assemblage Planned For One of the Country’s Largest Resort Complexes: Over 12 years in the planning, this to be built project will include hospitality, retail, time-shares, SFR housing, golf and other amenities. GSP/Rifkind arranged financing in 3-weeks to enable the borrower to close on a key parcel of land in the assemblage, which now totals over 2,000 acres of private land. Impressed by this performance, the borrower has retained GSP/R to arrange debt and equity financing for the entire project which will include more than $150,000,000 in development costs. (David Rifkind, David Ellis, Lee Norman)

$750,000 Quick-Close Land Loan in Marina Del Rey: GSP/Rifkind has provided short-term financing to enable our borrower funds for use for another. The borrower’s window of opportunity was rapidly closing and his other sources of capital were unable to perform when he contacted GSP/Rifkind. Financing was arranged by collateralizing 3 single-family estate lots in Marina Del Rey that the borrower owned. GSP/Rifkind closed in a matter of days allowing the borrower to successfully complete his other transaction. (David Rifkind, David Ellis)

For more information on GSP/Rifkind Capital Advisors’ quick close capabilities and structured finance programs, contact David Rifkind at ext. 109 or drifkind@gspartners.com or David Ellis at ext. 216 or dellis@gspartners.com.

$1,600,000 ($296.30/s.f.) Refinance of 5,400 s.f., 4-Tenant Strip Retail in Beverly Hills @ 59.3% LTV: Sounds too good to be true? Not when the property is in a prime Beverly Hills location where this repositioned 1930’s retail building is receiving $4.70 NNN and always stays occupied. While the site has no parking, there is more than adequate City provided parking contiguous. The tenants include an apparel store and two fast food chains. Borrower Objectives: To recapitalize the partnership, buying out an investor with proceeds from a combination of the refinance proceeds and more equity from the remaining partners. Other Issues: (1) Seismic: The high loan per s.f., supported by extraordinary land values was an issue as to how much insurable value was needed; (2) Flexibility: The borrower wanted prepayment flexibility. Terms: A portfolio lender provided floating rate, 15-year permanent financing with a prepayment schedule which allows great flexibility to the borrower. (1) Rate: 6 mo. LIBOR + 2.25%; (2) 25/15; (3) 59.3% LTV; (4) 1.80 DCR; (5) Prepay: 1.0% yrs. 1-5, then open; (6) Non-recourse; (7) Lender legal: $2,500, No ALTA survey; (8) No reserves for TI’s, leasing commissions, CapEx and insurance. Lender required tax impounds only; (9) Lender Fee: 0.75% (George Smith, David Stepanchak)

HOT MONEY!

Bank Providing Flexible Floaters Up To 10 Yr. Term From $1MM to $10MM: This bank will lend on income properties in California, Arizona and Nevada. They are under weighted in ARM product and are aggressively quoting for experienced borrowers. This is a portfolio lender with an experienced origination team and will consider an unusual spectrum of properties, often not acceptable to other lenders. Preference is stabilized properties although reposition opportunities will be considered. This program is for borrowers desiring flexibility. Program Highlights: (1) Pricing: "A" quality: 6 mo. LIBOR + 3.00%, "B": + 3.50%, "C": + 4.00%; (2) LTV: 65-75% (80% on "A" quality acquisitions only); (3) Min. DCR: 1.30; (4) Term: 5 to10 years; (5) Amort: 25 years (will consider 30 for "A" quality; (5) Prepayment: 3.0% in year 1 then declining (3,2,1,1,0 thereafter); (6) Lender Fee: Par.