11th District Financing

TRANSACTION OF THE WEEK !

$6,330,000 Land Loan for Entitled Multifamily Project Site: This San Diego area land parcel is graded and entitled for a several hundred unit apartment complex. It is located within a larger, master planned community. GSP/R provided financing, allowing the developer to monetize trapped equity to be used for further infrastructure improvements. The entire process took 10 days from start to funding, even with significant easement issues relating to the location of the property within the planned development. Terms: (1) Rate: LIBOR based; (2) Term: 1 year plus two 6-month options; (3) Amort.: Interest only (David Rifkind, David Ellis)

$2,468,500 Acquisition Financing for San Diego Area Multifamily: GSP arranged 74% of purchase price financing for this 100% occupied, 57 unit (56 - 2BR, 1 - 1BR) apartment complex. The floating rate financing provides maximum flexibility as it is prepayable at any time at par. Terms: (1) Pricing: 12-MAT + 2.45% (12-MAT = 5.33% this month); (2) Term/Amort.: 30/30; (3) LTV: 74%; (4) DCR: 1.15; (5) Lender Fee: 1.0%; (6) Recourse to the borrowing entity. (Gary M. Tenzer, Jim Neuman)

$1,250,000 Perm for Car Wash on Ground Lease: Our client, an experienced car wash owner/operator, purchased this property in 1998. The one acre property is located in a Northern California secondary market. There are 26 years remaining on the ground lease. The property includes gasoline pumps. Reposition: (1) Branding (it is now part of a chain owned by our client); (2) Auto detail area expanded; (3) Coupon program; (4) Repeat customer program; (5) New look. Revenue is trending upward as these programs are being implemented. Terms: (1) Pricing: 6-month LIBOR + 3.90%; (2) Term/Amort.: 5/20 with one 5-year option; (3) DCR: 1.28; (4) LTV: 66.5%; (5) Non-recourse; (6) Lender Fee: 1.0%. (George Smith, David Stepanchak)

HOT MONEY!

11^th District Financing for Commercial Properties is Back: Many of our borrowers like the stability of the 11^th District as opposed to other more volatile variable rate indices. For a limited time, a West Coast lender is funding C&I transactions floating over 11^th District COFI. Typical spread is 3.30%. Call for more details

Market Data: West LA Office Market: CB Richard Ellis’ 4^th Quarter 1999 Report indicates that the tightest submarkets in West LA are: (1) Beverly Hills Triangle (4.44% vacancy); (2) Fox Hills/Culver City (5.76%); (3) Santa Monica (5.79%); (4) Westwood (6.51%). The entire West LA market, which totals 38.4 million s.f., tightened in each quarter of 1999 as follows: 9.95%, 9.16%, 8.51%, 7.18. U.S. Industrial Market: The Society of Industrial and Office Realtors 2000 Report includes the following observations: (1) "remarkable stability" as the overall vacancy rate remained at 6.6%, same as 1998. This displays how quick the development community adjusted to slowing demand for space and avoided overbuilding. This may be a result of the impact of the internet as access to more accurate and timely data aids in the decision making processes. (2) 4 of the tightest markets in the nation are located in California: Visalia (#1, 0.2% vacancy), West LA (#3, 1.1%), Marin City (#3, 1.1%), Fresno (#9, 1.5%)

Ed Parker Joins GSP: A belated Fin-Fax welcome to Ed Parker who joined GSP in January. Ed began his career in Las Vegas, NV where he was successful in leasing commercial space. He was then recruited by a major credit company, where he became a successful underwriter and loan originator placing permanent debt as well as construction debt for a wide range of properties. Since joining GS, Ed has been working with "Team Mozer". A graduate of the University of Arizona, Ed has been active in many organizations including NAIOP, CMBA, ICSC, and the Commercial Marketing Group and holds real estate licenses in both California and Nevada. Ed can be reached at ext. 131 or eparker@gspartners.com

SPEAKER'S CORNER

George Smith will be moderating the Finance Panel at Real Estate Conference Group’s "Technology + Real Estate" Conference which will focus on the internet’s impact on commercial real estate. Date: April 17, 2000; Location: Century Plaza Hotel (Los Angeles). For more information, call (310) 285-5327 or go to www.realestateoutlook.com.