$18,900,000 ($155 Loan/Sq. Ft.)

$18,900,000 ($155 Loan/Sq. Ft., 80% LTV) Permanent Financing for 2 Property, Scientific Lab Space Portfolio Totaling 122,044 Sq. Ft. – Closed Last Business Day of the Millennium! GSP arranged $18,900,000 of permanent financing ($155 loan/sq. ft., 80% LTV) for the 2 property, scientific lab space portfolio totaling 122,044 sq. ft. located on opposite US coasts (Southern California and Northeast US). With 3 weeks to close, the Southern California property was substituted for another East Coast property where the client was unable to obtain a ground lease estoppel in time to close. All 3^rd party reports, underwriting, and 3^rd party due diligence were expedited to facilitate the year-end closing. The loan had no holdbacks or reserves for re-tenanting. Northeast Coast Property: The property is in a 7-building scientific research business park where the client owns 1 other building plus a parcel of land for future development, 3-story, 92,711 sq. ft. 100% occupied building with 4 tenants (the primary tenant with 35% of the space is a major East Coast university), roll-over exposure is significant given that no roll-over reserves were held back – 36% roll-over in 2003 & 49% in 2004, 43% of the space built-out as laboratory & 25% of the space built-out as office (remaining space storage & common area/mechanical), built in 1994. Southern California Property: 2-story, 29,333 sq. ft. 100% occupied building with one tenant (a private scientific research firm) on a 15 year lease, approx. 25% of the space built-out as laboratory with the remaining space primarily built-out as office, built in 1997. The Financing - Senior Debt: (1) Loan Amount: $18,900,000 (80% LTV, 1.20 DCR); (2) Rate: 10-Year T’s + 2.32%; (3) Term/Amort: 10/30; (4) Non-recourse; (5) Lender Fee: Par. (Gary E. Mozer, Lee T. Norman)

$15,000,000 ($110 Loan/Sq. Ft., 76% of Total Project Cost) Acquisition/Reposition Senior Bridge Financing for 5-Building, 135,683 Sq. Ft. Office/R&D Business Park: GSP arranged $15,000,000 of non-recourse senior bridge financing (76% of total project cost) for the acquisition and reposition of a 5-building, 135,683 sq. ft. office/R&D business park in Orange County, CA. The Property: The property is ½ of a contiguous business park, 100% occupied with 5 tenants (each building has separate tenant), Class B office/R&D use located on approx. 9.4 acres, built late 1960’s to late 1970’s, % office build-out between 43% and 100% with property average build-out of 73%, average in-place rents 60% below market , 78% of tenants rolling in next 2 years, property has sufficient land to build (and is entitled for) additional office space. Location: Institutional quality, "high identity" in-fill location adjacent to upscale bedroom communities and major transportation corridors. Area features numerous amenities including restaurants, hotels, and prime retail. Submarket Occupancy: 95%+. Reposition: Borrower will cosmetically upgrade the project, convert the majority of the existing warehouse space into office space, and raise rents to market upon tenant roll-over. Capital Structure: (1) Purchase Price: $15,600,000; and (2) Renovation, Leasing Reserve, Working Capital Reserve, Interest Reserve, Closing Costs: Approx. $4,200,000. Total Capitalization: Approx.$19,800,000. The Financing - Senior Debt: (1) Loan Amount: $15,000,000 (approx. 76% of total cost); (2) Rate: LIBOR + 2.95%; (3) Term: 3 years with a 1-year extension for ¼ point; (4) Interest only with 25 year amortization during extension period; (5) Non-recourse; (6) Lender Fee: 1.25%; (7) Prepayment: Year 1 - locked, year 2 - 0.50% fee; year 3 par. (Gary E. Mozer, Lee T. Norman)

Hundreds of our FinFax readers responded to our January 1999 questionnaire and attempted to predict various interest rates and economic indices. Each category winner will be awarded a $100.00 donation to their favorite charity. Ties within a category were settled by a random drawing. The overall winner, Mark Linehan, will also be awarded a bonus of $500.00 to his favorite charity.

* indicates multiple correct responses, drawings were held to break ties (number of correct responses in parentheses)