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| Volume VIII, No. 46 |
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December 1, 2000 |
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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
9.50% |
| 11th District |
5.589% |
| 3 Mo. T’s (YTM) |
6.21%
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| 6 Mo. T’s (YTM) |
6.17% |
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| 5 Yr. U.S. T’s |
5.45% |
| 10 Yr. US T’s |
5.51% |
| 30 Yr. US T’s |
5.64% |
| 12-MAT |
6.083% |
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| LIBOR - 1 mo. |
6.77% |
| LIBOR - 3 mo. |
6.68% |
| LIBOR - 6 mo. |
6.60% |
| LIBOR - 1 yr. |
6.52% |
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| Tier 2+ (80% LTV) |
7.58% |
| Tier 3+ (65% LTV) |
7.43% |
| Tier 4+ (55% LTV) |
7.23% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK!!!
$9,800,000 @ 7.61% for 53,000 Sq. Ft. ($185/Sq. Ft.) Shadow-Anchored Retail Center in Ventura County: This center was built in 1990 and is situated in a high-income area directly across the street from an approximately 1 million s.f. regional mall. The major tenants include a non-credit chain restaurant and national chain furnishings/accessory retailer. The remaining tenants are a mix of national and local non-credit tenants. Present Occupancy: 96%. GSP presented the transaction to a number of CMBS sources and received quotes ranging from 1.95% to 2.40% over 10-year Treasury. The transaction closed 43 days after the application was signed. (1) During the process, the borrower took advantage of a 30-day rate lock which fixed both the Treasury index and the interest rate spread as well, thereby completely mitigating interest rate risk; (2) Prior to the financing, the property was owned free and clear--this loan was 100% cash out. Terms: (1) Rate: T + 1.95% (7.61%); (2) Term/Amort: 10/30; (3) LTV: 65%; (4) DCR: 1.50; (5) Non-Recourse; (6) Lender Fee: Par. (Gary M. Tenzer) |
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| $13,050,000, 233,000 s.f. Hobby Lobby/Gart Sport Anchored, 233,938 Sq. Ft. Shopping Center in Colorado Springs, CO: GSP arranged permanent financing on this recently renovated retail property. Property Specs: (1) 80% of the center is leased to Hobby Lobby, Gart, TJ Maxx, and Ross Stores, all newly constructed in 1998. (2) Remaining 15 in-line shops are from original 1960's construction; (3) Prime in-fill location. Financing Challenges/Solutions: (1) Lender required environmental insurance due to minor soils contamination. GSP negotiated the insurance premium to be 75% refundable upon receipt of a "no further action letter". (2) Lender's zoning search indicated an "illegal, non-conforming" use due to a technicality in the Approved Zone Plan. GSP arranged special insurance coverage and established an escrow to mitigate risk until the Approved Plan can be amended, estimated to take 6 weeks; (3) Anchor tenant would not sign the lender's SNDA, strict even by CMBS standards. GSP tracked down a similar SNDA signed by the tenant in 1999, which solved this problem. (4) Customizations: Cap on TI reserve escrows, reduced loan servicing disbursement fees, waiver of audited financial statement requirement, reduced fee for loan assumption. Loan Terms: (1) Pricing: 10 yr. T + 2.20%, (2) Term/Amort: 10/30; (3) LTV: 75%; (4) DCR: 1.30; (5) $500,000 holdback for lease-up; (6) Non-recourse; (7) Lender Fee: Par. (Michael Schwartz, George Smith). |
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THE 27TH ANNUAL RETAIL GAME: Industry experts will forecast which way the retail real estate business is heading in response to electronic commerce and other new trends at the 27th Annual Retail Game, a daylong seminar being held on Thurs. Dec. 7th at the LAX Marriott. The event will be presented by the International Council of Shopping Centers in cooperation with program co-chairmen James S. Rosenfield and Daniel Bercu of Santa Monica-based J.S. Rosenfield & Co., a retail real estate industry consultant. The event will include case studies of successful shopping centers and awards to their developers: Rick Caruso of Affiliated Holdings for the Grove at Farmers Market; Rick Evans of Irvine Co. for Fashion Island; Rick Kuhle of Vestar for Long Beach Town Center; and Fred Segal of FS-Fred Segal for Malibu Country Mart. A presentation on "The New Economy" will focus on lending and economics, and panel discussions will include "The Next Generation of Retailers" and "Retail Real Estate Online". In an "Area Outlooks" session, real estate developers, investors, banking and financial executives, brokers and consultants will discuss retail developments in and around Los Angeles. Admission is $175. Information is available at http://www.icsc.org or by calling (646) 728-3800.
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CONGRATULATIONS TO ROSE & STEVEN HAMERMESH!!!
What's In A Name? Steven and Rose Hamermesh are pleased to announce the birth of their first daughter, Hannah Nicole Hamermesh. Steven contemplated many different names for Hannah. Mezz Debt, Cash Flow, Amortization, Swap Spread, Bips and Risk Based Pricing were among the leading contenders. After a billionth of a second, Rose decided upon Hannah Nicole. Mother, daughter and Austin (big brother) are all doing fine. Father is elated! Other Highlights: (1) Time/Date: 8:57 p.m., Nov. 28, 2000; (2) Weight: 8 lbs., 6 oz.; (3) Length: 20 in.; (4) Mother: Resting comfortably.
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| * GSP is an L.A. correspondent for ARCS Commercial Mortgage, the nation's largest FNMA/DUS originator. |
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