Nationwide Small Loan Program - FINfacts



Volume VIII, No. 37		September 22, 2000

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	9.50%
11th District	5.962%
3 Mo. T’s (YTM)	6.15%
6 Mo. T’s (YTM)	6.23%

5 Yr. U.S. T’s	5.92%
7 Yr. US T’s	???
10 Yr. US T’s	5.85%
30 Yr. US T’s	5.91%

LIBOR - 1 mo.	6.62%
LIBOR - 3 mo.	6.66%
LIBOR - 6 mo.	6.76%
LIBOR - 1 yr.	6.82%

Tier 2+ (80% LTV)	7.87%
Tier 3+ (65% LTV)	7.72%
Tier 4+ (55% LTV)	7.52%
10 yr. term/30 yr. amort.

TRANSACTION OF THE WEEK!!!

$6,300,000 Take-Out for Multi-Tenant Flex-Industrial Building in North Carolina: GSP has arranged take-out, permanent financing for this 82,350 industrial building located adjacent to the Research Triangle Park, in Raleigh-Durham. The property was built spec (no pre-leasing). Timing: The transaction was structured to accommodate a required payoff date to the construction lender so the borrower could obtain construction financing for a sister property on an adjacent parcel. GSP negotiated a funding date prior to occupancy and space build out for a few of the tenants. Other "customizations": (1) Flexible TI and LC escrow to be built up out of cash flow over time to accommodate rollover risk from 5 year leases; 2) Early 90-day rate lock with no rate lock fee; (3) Customized procedure for leasing escrow draw requests with respect to servicer charges, frequency of requests and turnaround times for fund disbursements. Terms: (1) Rate: T + 2.32%; (2) Term/Amort: 10/30; (3) LTV: 75%; (4) DCR: 1.25; (5) Non-recourse; (6) Lender Fee: Par. (Michael Schwartz)

$2,200,000 Flexible for Roaring 20's Vintage, 43,000 s.f. Office Building: This historic, 10-story structure contains no on-site parking. The borrower has an agreement with an adjacent retail center to provide parking. The property is 100% leased to approx. 40 tenants, all-non credit local businesses including ground floor retail/food. The city financed a seismic retrofit through a bond issue. GSP arranged floating rate, prepayable financing with a regional portfolio lender. The new loan takes out 3 layers of existing debt, including the bond debt. The lender reserved for the bond payoff as there are only 2 prepayment "windows" annually. The flexible prepayment allows our borrower to continue repositioning the asset, which still has several tenants at below market rents (some on a month to month basis). Terms: (1) Pricing: 12 MAT + 2.83%; (2) Term/Amort: 10/25; (3) LTV: 70%; (4) DCR: 1.30; (5) Non-recourse; (6) Prepayment: yrs. 1-3: 1.0%, prepayable at par thereafter. (Michael Gottlieb)

HOT MONEY!

Nationwide Small Loan Program (up to $3,000,000) Features Fixed Rate Pricing with Flexible Prepayment: Transactions of this size are at the lower end of our radar screen, but we think our borrowers should be aware of this unique lending program. Third party costs are fixed at $3,500-$8,500 (including legal) depending on property specifics. Program Highlights: (1) Loan Size: $250,000- $3,000,000; (2) Loan Terms: 5, 7, 10 years with 25 or 30 year amort. (30 for multifamily only), self-amortizing 15/15 or 20/20 also available; (3) Pricing: 2.15%-3.00% over corresponding treasury (10-year T is used for 15 or 20 year terms); (4) Prepayment Schedule (for 10 year term): Yrs. 1-3: 6 months interest, yrs. 4-6: 3 month interest; yr 7: 1 month interest; yr. 8-10: Prepayable at par; (5) Max. LTV/Min. DCR: 80%/1.20 for multifamily, 75%/1.25 for commercial; (6) Lender Fee: 1.0% (can price fee into spread for a par transaction).

SPEAKER'S CORNER

REMINDER: George Smith will be moderating the Finance Panel at Real Estate Conference Group's "Apartment Outlook 2000" Conference, which will focus on "the new era in apartments". Date: Mon., October 2, 2000; Location: The Beverly Hilton Hotel (Beverly Hills). For more information, call (310) 285-5327 or go to www.realestateoutlook.com

6TH ANNUAL GSP REAL ESTATE LUNCHEON
Wednesday, October 11, 2000

Keynote Speaker-MICHAEL MILKEN

1,467 Attendees and Climbing… rapidly!!!
19 Days and Counting

New Table Landlords/Sponsors: The Bascom Group, Deutsche Banc Mortgage Capital, L.L.C., First Federal Bank, Maguire Partners, Real Efficient.

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.

* GSP is an L.A. correspondent for ARCS Commercial Mortgage, the nation's largest FNMA/DUS originator.