Lender Offers 5 year Fixed-Rate Loans

TRANSACTION OF THE WEEK!!!

$28,250,000 83% of Total Cost Acquisition/Reposition Loan for a Non-Contiguous 7-Property Industrial Portfolio - 30 Day Close: GSP has arranged a $28,250,000 non-recourse acquisition/reposition loan (83% Loan-to-Cost) for an approximate 700,000 Sq. Ft. non-contiguous 7-property industrial portfolio located in the Mid-West. The transaction was underwritten, structured, and funded in 30 days. Structure: The total project cost (including closing costs and deferred maintenance) was approximately $34,100,000, and the loan amount was $28,250,000 - 83% Loan-to-Cost. No leasing costs were held back from the loan proceeds, even though the business plan of the client is to roll the under-market rents upon tenant lease expiration. One property has an existing environmental condition. As part of the negotiations, the client was able to defer the purchase of this one property until the remediation was completed. To accommodate the "deferred" purchase, the lender held back approximately $3.4MM from the loan to facilitate the purchase upon delivery of a clean property. Additionally, the lender held back $750,000 for deferred capital items to be cured in the immediate term. Property: An approximate 700,000 Sq. Ft. 7-property (20 separate buildings) industrial portfolio; low vacancy sub-markets with excellent access to area CBD & transportation corridors; late 1970's, early 1980's vintage; 14'-21' clear height, mix of tilt-up and steel frame/masonry construction. Terms: (1) Loan Amount: $28,250,000; (2) Interest Rate: LIBOR + 2.75%; (3) Term: 3 years with 1-2 year extension option for 0.25% fee; (4) Amort: yr. 1-Interest only, then 30 year amort; (5) Prepayment: A maximum $8MM prepayment Year 1 for 2.00% fee, then open to prepayment with no penalty; (6) Prepayment Releases - greater of (a) 110% of allocated loan amount or (b) the lesser of 100% of net sale proceeds or an amount to yield a 12.50% NOI to loan amount; (7) On-Going Reserves: $0.10/Sq. Ft. capital reserve/year, no leasing reserves; (8) Lender Fee: 1.00%; (9) Exit Fee: 1.00%; (10) Non-recourse except standard carve-outs; (11) Timing - Closed in 30 days. (Gary E. Mozer, Lee T. Norman)

GSP/Rifkind Capital Advisors Update

$3,600,000 for New 20-Screen Multiplex with Subordinated Redevelopment Debt: Located in the downtown district of an Inland Empire city, this new theatre complex is the cornerstone of a redevelopment district. GSP/Rifkind's financing allowed the developer to take out the original construction loan. Challenges to financing: $8,000,000 of Federal and local government agency debt needed to be subordinated behind GSP/Rifkind's loan, special purpose property. Solutions: Intercreditor agreements and subordination documentation had to be approved by the lender and all involved agencies, lender recognized that the project is part of a larger redevelopment plan. GSP/Rifkind provided a 15 year fully amortizing loan in order avoid refinance "balloon" risk. GSP/Rifkind closed as quickly as possible, as soon as all agency agreements were finalized (David Rifkind, David Ellis) Use GSP/Rifkind's quick-close capability to create value in your transaction. For more info., contact David Rifkind (ext. 111 drifkind@gspartners.com) or David Ellis (ext. 119, delis@gspartners.com).

HOT MONEY!!!

Lender Offers 5 year Fixed-Rate Loans with No Prepayment Penalty This unique portfolio lender will fund loans nationwide offering borrowers flexibility with no rate risk. They will consider 80% LTV loans (mostly for multifamily), but prefer to stay in the 70-75% range. Also, they can consider loans up to $20,000,000 but their "sweet spot" is app $4,000,000 - $5,000,000. Program highlights: (1) Loan sizes: $500,000-$20,000,000; (2) Term: 5 years; (3) Amort: 25-30 years; (4) Pricing: 5 year T + 1.20-3.00%; (5) Minimum DCR: 1.20 on apartments/1.25 on commercial; (6) All major property types, owner occupied OK; (7) Recourse required.