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| Volume VIII, No. 38 |
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September 29, 2000 |
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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
9.50% |
| 11th District |
5.456% |
| 3 Mo. T’s (YTM) |
6.21%
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| 6 Mo. T’s (YTM) |
6.27% |
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| 5 Yr. U.S. T’s |
5.84% |
| 7 Yr. US T’s |
??? |
| 10 Yr. US T’s |
5.80% |
| 30 Yr. US T’s |
5.88% |
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| LIBOR - 1 mo. |
6.62% |
| LIBOR - 3 mo. |
6.81% |
| LIBOR - 6 mo. |
6.76% |
| LIBOR - 1 yr. |
6.81% |
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| Tier 2+ (80% LTV) |
7.77% |
| Tier 3+ (65% LTV) |
7.62% |
| Tier 4+ (55% LTV) |
7.42% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK!!!
Top Ten Internet Retailer Benefits From Creative Solution Provided By GSP/Rifkind: A name brand "eTailer" has a 1.1 million sq. ft. East Coast distribution "campus". The centerpiece of the campus is a newly built, state-of-the-art 720,000 sq. ft., distribution warehouse on over 100 acres. The massive single structure features robotic computerized equipment, 48 foot clear heights, etc. Total Project Cost: $26,000,000. The company needed to: (1) Monetize its equity in the new building, (2) Put cash back on its balance sheet, (3) Take the real estate off its balance sheet. GSP/Rifkind arranged a sale-leaseback with one of their non-institutional investors that accomplishes the company's goals while maintaining a reasonable occupancy cost and grants them a flexible repurchase option. Significant Challenges: (1) The eTailer, though very well known, is speculative as a long-term business, non-investment grade, (2) Surrounding real estate market is thin, located in a secondary market. This property constitutes a large percentage of commercial space in the immediate trade area. If the property becomes vacant, the re-leasing period could be up to two years, (3) Speed - For public reporting purposes, this transaction had to be completed in a very short period of time. GSP/R was able to deliver a commitment within 7 days of being introduced to the transaction and the closing was completed in less than 30 days; (4) Repurchase - GSP/Rifkind's investor offered a 10 year NNN lease with flexible repurchase agreement allowing the eTailer to buy back the building during the lease term. (David Rifkind/David Ellis) For more information on GSP/Rifkind's Quick-Close capabilities, contact David Rifkind (ext. 111, drifkind@gspartners.com) or David Ellis (ext. 119, dellis@gspartners.com) |
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| $900,000 Perm for Auto-Repair Facility/Bar (!) Anchored Retail Center in East Hollywood: This 10,000 s.f., 100% leased, L-shaped center was built in 1986 on a busy corner. However, a portion of the center suffers from poor visibility. Tenants in that portion pay discounted rents. The 7 non-credit tenants are a mix of local businesses including a hair salon, Laundromat and bakery. Terms: (1) Rate: 8.875%; (2) Term/Amort: 10/22; (3) Prepayment: Yrs. 1-5: 12 months interest, yrs. 6-10: 6 months interest. Additionally, up to 10% of loan principal may be prepaid each year at par; (4) Recourse to the general partner; (5) Loan documentation was customized to the needs of an offshore borrower group. (Michael Schwartz and Behzad Omid) |
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| Single-Tenant Franchise Lender Funding Video Store Transactions: This nationwide lender funds single-tenant transactions (acquisitions and refinances) primarily for fast food, gas stations and convenience stores, working off an approved tenant list. Blockbuster and Hollywood Video are now on that list. Program Highlights: (1) Deal Size: $500,000 and up (portfolios welcome); (2) Term/Amort.: Usually 10/25 although self-amortizing transactions are available; (3) Pricing: 10-year T + 2.75%-3.50%; (4) Min. DCR: 1.25, (5) Max. LTV: 75%; Leaseholds or fee simple; (5) Third Parties: Typically $2,500 appraisal, $1,800 environmental/engineering, $5,000-$6,000 for legal. |
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LAST CHANCE TO SIGN-UP !!
6TH ANNUAL GSP REAL ESTATE LUNCHEON
Wednesday, October 11, 2000
Keynote Speaker-MICHAEL MILKEN
- 1,630 Attendees and still climbing rapidly!!!
- 12 Days and Counting
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New Table Landlords/Sponsors: CB Richard Ellis, CB Richard Ellis - Valuation Services, J.H. Snyder Company, Paul, Hastings, Janofsky & Walker, LLP.
For information on tax-deductible Tables of 10 or individual seating, contact Steven Hamermesh (ext. 123).
For more information about the A-T Medical Research Foundation click here.
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IN MEMORIUM - IRVING FULLER
We at George Smith Partners, Inc. mourn the passing of Irving Fuller, our good friend and client. "Irving was one of the true gentlemen in the real estate and entertainment industries." - George Smith
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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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