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| Volume VIII, No. 40 |
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October 13, 2000 |
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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
9.50% |
| 11th District |
5.509% |
| 3 Mo. T’s (YTM) |
6.18%
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| 6 Mo. T’s (YTM) |
6.19% |
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| 5 Yr. U.S. T’s |
5.71% |
| 7 Yr. US T’s |
??? |
| 10 Yr. US T’s |
5.72% |
| 30 Yr. US T’s |
5.80% |
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| LIBOR - 1 mo. |
6.62% |
| LIBOR - 3 mo. |
6.79% |
| LIBOR - 6 mo. |
6.76% |
| LIBOR - 1 yr. |
6.78% |
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| Tier 2+ (80% LTV) |
7.82% |
| Tier 3+ (65% LTV) |
7.67% |
| Tier 4+ (55% LTV) |
7.47% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK!!!
Hooray for Hollywood! $32,175,000 Construction Financing (LIBOR + 2.10%) for 212,000 sf Multi-Level Entertainment Center Anchored by the Cinerama Dome: GSP arranged financing for this high-profile redevelopment project, a cornerstone in the revitalization of Hollywood. The destination oriented retail entertainment center will become the flagship location for the Pacific Theatres chain. GSP arraigned a 66% of cost loan with recourse to the borrowing entity, no "warm-body" signature required including carve-outs. The Project: (1) A 13 screen (totaling 4,000 seats) multiplex anchored by the landmark Cinerama Dome supplemented by an additional 12 new screens; (2) 50,000 s.f., 2-story state of the art fitness center/health club including basketball courts; (3) Multiple restaurants and retail; (4) A 7-story parking garage financed through a municipal bond-issue. The City of Los Angeles owns the land parcel for the garage. The City "condo-ed" the air space above the garage to Pacific Theatres allowing for the garage to serve as a partial foundation for the multiplex. The center is being built on the Dome's 6+ acre parking lot and extending eastward onto the old Greyhound Station parking lot on Vine Street. Terms: (1) Pricing: 30 day LIBOR + 2.10%; (2) Term: 24 months with two 12 month extensions; (3) Amort: Interest only; (4) Lender Fee: 1.0%; (5) Loan to Cost: 66%. (George Smith, David Stepanchak) |
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| $12,600,000 ($228/Sq. Ft.) 75% LTV Permanent Loan Refinance for a 2-Building (Contiguous) Office/Retail Complex: GSP has arranged a $12,600,000 non-recourse permanent loan (75% loan-to-value) for an office/retail complex located in San Francisco, CA - a $228/sq. ft. loan amount on vintage 1852 & 1933 structures. Property Specs: Approximate 55,000 s.f., 2-building office/retail complex (2 and 3 stories); less than 5% overall market vacancy, major CBD location; older buildings with significant rehab (including major structural upgrades) in 1998; of the total square footage, approximately 30% of the space is below-grade/basement space primarily built out as office. Structure: The client purchased the property in early 1999 at which time the occupancy was 47%. The purpose of the refinance was to repay the floating rate acquisition debt and take advantage of lower rate, long-term fixed rate debt. Since acquisition, the client fully leased the building, and increased the in-place rents by over 360%. There is one tenant occupying approximately 10% of the space whose lease expires at the end of 2000. GSP was able to negotiate a loan amount funding at close based on the future expected market rent of the space (360% greater than the rent the tenant was currently paying). A hold-back was established until the tenant rolls. This enabled the client to lock in fixed rate financing for the full amount of the underwritable loan (based on the year-end 2000 NOI) today instead of waiting until the final space rolled to market. Terms: (1) Pricing: 10 year T + 2.35%; (2) Term/Amort: 10/30; (3) LTV: 75%; (4) Lender Fee: par; (5) Non-recourse except standard carve-outs (bankruptcy excluded from standard carve-outs). (Gary E. Mozer, Lee T. Norman) |
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| $2,460,000 Tom Barber Golf Center - 74-Stall Night Lit Driving Range Near Thousand Oaks and Moorpark: Open only 4 months, permanent mortgage financing was placed with the "private banking" group of one of the nation's largest commercial banks. The Project: The facility is night lit, 74 tees (40 with shade cover), putting green, chipping green, and bunkers. A true "teaching facility", the land was graded as a sculptured fairway with 4 greens and "sandtraps" with outdoor carpet, 15 acres of it. Location is at the Tierra Rejada off-ramp of the 23 Freeway. The Operator: Tom Barber, the operating partner of the LLC, is one of the most distinguished teaching professionals in Southern California. He and his family have operated the Griffith Park Driving Range for more than 30 years. Financing Terms: (1) Loan Amt: $2,460,000; (2) Pricing: 30 day LIBOR + 3.00%; (3) Term/Amort: 10/20; (4) Lender Fee: 1.0%; (6) Full recourse; (7) Loan is not to exceed 70% of MAI value and was approximately 80% of developer cost. (George Smith, Joel Simaie) |
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HOT MONEY!!!
Portfolio Lender Gets Aggressive With 5-year Fixed Rate Program Featuring Flexible Prepayment: Attention borrowers looking to lock in rate without defeasance or yield maintenance! This lender is looking for transactions in the Western United States up to $25,000,000. Program Highlights: (1) Pricing: 5 yr. T's + 2.60%-2.90% (for C&I, apartment pricing will be tighter); (2) Term/Amort: 5/25; (3) Max LTV: 70%; (4) Minimum DCR: 1.30; (5) Prepayment: 4% yr. 1, 3% yr. 2, 2% yr. 3, 1% thereafter; (6) 3rd Parties/Costs: Phase 1, Appraisal required (no structural, no PML, no survey), legal capped at $2,500, no lender fee ($500 processing fee only).
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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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