$6,600,000 Land Loan for Champion Development

$6,600,000 Land Loan for Champion Development's San Diego Planned 157,000 s.f. Mixed Use Development: GSP arranged new financing for a 60,000 s.f. parcel of land located in San Diego's Gas Lamp district. The property is a city block bounded by Island Avenue on the North, "J" Street on the South, 4th Street on the West and 5th Street on the East, near expanded convention center and the planned new baseball stadium. The property is unique as it is not encumbered by historic buildings. GSP arranged the acquisition loan for this parcel two years ago. Since then the project has gone through evolutionary planning including all entitlements. The planned development: Phase I (36,000 s.f of land): 157,000 s.f., 6-story building consisting of condo quality apartments, retail and office, 3 levels subterranean parking. Phase II (24,000 s.f. of land): 12 story building consisting of 2 stories of retail and 10 levels of for sale condominiums. The loan was committed in 10 days. This was a co-brokerage between GSP and Bond Capital. Terms: (1) Rate: Prime +2.00% (8.75% floor); (2) LTV: 50%; (3) Term/Amort: 2 years/interest only; (4) Lender Fee: 1%; (5) Recourse. (George Smith, Gary E. Mozer, Joel Simaie)

$2,700,000 for 220-Unit Apartment Complex in Texas Tertiary Market: GSP has arranged financing for this 14 building complex spread out over 9 heavily landscaped acres. All buildings are 2 stories. Amenities include pool and clubhouse. Occupancy: 85%. The financing allowed the borrower to replace high fixed rate debt (over 9%) with a 6.85% perm. Borrower performed $80,000 of deferred maintenance during processing to avoid reserve holdbacks. Challenges/Solutions: (1) Existing loan could only be pre-paid on the last day of the month; (2) Lenders offices were destroyed on 9/11; (3) Borrower changed during transaction. GSP worked with lender to recreate diligence materials and timed the loan closing for end of month. Terms: (1) Rate: T+2.40% (6.85% coupon floor); (2) Term/Amort: 10/30; (3) LTV: 75%; (4) DCR: 1.30; (5) Non-recourse; (6) Lender fee: par; (7) Process: Streamline docs, short form appraisal, no environmental report, $1,000 for legal. (Peter Smyslowski, Gerald Price)

$1,350,000 Fixed (6.55%) Adjustable Financing for "B+" Quality 15-Unit Apartment Building in Huntington Beach, CA.: GSP's Orange County office has arranged permanent financing on this 25 year old, garden style apartment complex located in Huntington Beach, CA. This is "fixed to floating" financing, which converts after 5 years. Prepayment penalty is - 5% - 4% - 3% - 2% - 1%, then open to prepayment at par. Lender is Southern California based thrift. Terms: (1) Rate: 6.55% fixed for 5 years, then 11th District COF +2.50%; (2) Term/Amortization: 10/30; (3) LTV: 70%; (4) DCR: 1.35; (5) Non-Recourse; (6). Cash Out. (Mike Gottlieb)

Time is Running Out! Call by close of business Thursday, December 20 and you can fund by year-end GSP/Rifkind is still able to close transactions this year. GSP/Rifkind Capital Advisors offers certainty to borrowers with deadlines. Program Highlights: (1) Geographic: Nationwide; (2) Investment Size: $1.0M+ (in CA), $3.0M+ (outside of CA); (3) Minimal Due Diligence: Usually no third party reports; (4) Negotiable Recourse; (5) Limited or no prepayment penalty; (6) All property types considered. For more information, contact David Rifkind (ext. 111, drifkind@gspartners.com) or David Ellis (ext. 211, dellis@gspartners.com) David Rifkind drifkind@gspartners.com

HAPPY HOLIDAYS!

GSP thanks all of our clients, lenders and associates. No FinFax next week. See you in 2002.