Investment Bank Filling Out CMBS Pool

$16,000,000 Acquisition (98% of Total Project Cost) Financing for 300-Unit Apartment Complex in South Florida: GSP has arranged $4,000,000 of equity (90% of equity requirement) and $12,000,000 (75% of total capital structure) of non-recourse senior bridge financing for the acquisition/reposition of an apartment property located in a Florida coastal community. Property Specs: Built in 1974 with considerable deferred maintenance, 300 Units, 6 buildings, 13 acre site (22 units per acre), 1.8 parking spaces per unit, 2 swimming pools, in-fill location, 55,000 car/day traffic count. Reposition: Rehab unit interiors, building exteriors, common areas, landscaping and amenities and raise rents to market levels. Our borrower is experienced at repositioning mid-size apartment properties. This is his first large transaction as the principal with a major rehab component. Terms: Senior Debt: (1) Amount: $12,000,000; (2) Rate: 30 day LIBOR + 3.00%; (3) Term: 3 years; (4) Amortization: year 1&2-interest only, year 3-30 year amort.; (5) Non-recourse; (6) Lender Fee: 1.0%; (7) Holdback Budget: approximately $16,000/unit for renovation. Equity: (1) Amount: $4,000,000; (2) Terms: Confidential. (Gary E. Mozer, Gerald Price)

$1,825,000 Fixed/Adjustable Financing of "B" Quality 40 Unit Apartment Building in North San Diego County: GSP's Orange County office has arranged permanent financing on this 16 year old, garden style apartment complex located in San Marcos, CA. Fixed for five years at 7%, this 30 year fully amortizing loan floats at 11th district COF + 3.05% for the remaining 25 years. The best prepayment flexibility available! - 3% - 2% - 1% - 1% - 1% years 1-5, then open to prepayment at par. Lender is Southern California based thrift. Terms: (1) Interest Rate: 7.00% fixed for 5 years, then 11th District COF +3.05%; (2) Term/Amortization: 30/30; (3) LTV: 70%; (4) DCR: 1.35; (5) Non Recourse; (6) Cash Out. (Mike Gottlieb)

GSP Rifkind Funds 6th Land Development Loan ($5,000,000) for Otay Ranch Development--a 5,300 acre Master Planned Community: When GSP/Rifkind first got involved with our client on this project they were just beginning rough grading. In the past 24 months, they have sold over 2,000 homes, constructed parks, commercial buildings and public schools. Other major infrastructure includes building a major state highway through the property! OTR continues to be the highest sales velocity project in California. This loan was secured by fully entitled land that was "in the path"--as the build out of the ranch marches eastward, this collateral will be graded and sold shortly. The loan proceeds are being used to grade current phases for sale to institutional homebuilders. (David Rifkind, George Smith, David Ellis).

Need to close by year-end? Do you want certainty? There are less than 15 business days left in 2001, but we are still able to close transaction this year. GSP/Rifkind Capital Advisors offers certainty to borrowers with year-end deadlines. This program works great for negotiating discounts and other favorable terms for time sensitive deals. 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)

Investment Bank Filling Out CMBS Pool, Cutting Edge Pricing for Low Leverage Transactions: This originator will price as low as 1.60% over Treasuries. Program Highlights: (1) Nationwide; (2) Loan Amount: $20,000,000+; (3) Low leverage: 1.40 DCR on the stress constant (9.66 for multifamily, 10.09 for industrial, retail, office); 65% LTV; (4) Term/Amort: 10/30; (5) Non-recourse.

George Smith will moderate the finance panel at Real Estate 2002, January 16, 2002 at The Century Plaza Hotel, Los Angeles. Keynote speakers include Sam Zell, Chairman of Equity Group Investments, LLC and Robert T. Parry President/CEO of Federal Reserve Bank of San Francisco. For more information, call (310) 446-4320 or visit www.realestateoutlook.com.