Historically low Treasuries

$20,435,000 ARCS (Fannie Mae/DUS) Tier 2+ Financing for 6 Apartment Buildings Totaling 240 Units in West Los Angeles (5 Fixed and 1Floating), Fixed Rates Ranging From 6.43% to 6.78% and the ARM starting at 5.33%: GSP has arranged Fannie Mae refinancings for the Roberts Company, one of the largest apartment owner/operators in West Los Angeles that was co-founded by Robert Blumenfield in 1966. All properties are mid-to-late 1960's vintage, in excellent condition, 100% occupied and located in the Westwood and Brentwood submarkets. All but one of the loans have fixed rates. Borrower chose the convertible float-to-fixed loan for one property to maximize proceeds. The average appraisal capitalization rate was 7.50%, although cap rates are indicated as being lower in discussions with knowledgeable Westside brokers with few properties of this type ever coming to the market for sale. The average loan amount was (9.5) x (net cash flow). The process: (1) GSP did the initial underwriting, loan sizing and packaging for ARCS; (2) From first application to final funding: 120 days; (3) Used the same 3rd party vendors for all properties which allowed for more efficient processing; (4) Borrower's involvement throughout the underwriting process was encouraged, including providing sales comps and rent comps because of the borrower's significant portfolio and long term ownership in the market. (4) All loan amounts were higher than applied for; (5) Final rates were 30-40 bps. below application with no floors; (6) Borrower had the option to float or fix until final committee approval; (7) GSP is processing two additional FNMA/DUS apartment loans for same borrower.

5 Fixed Rate Loans: (1) DCR: 1.25; (2) Term/Amort: 10/30; (3) Non-recourse

1 Floating Rate Loan: (1) Tier 2+; (2) 90 day LIBOR + 1.87%; (3) Term/Amort: 10/30; (4) Convertible ARM Feature: Borrower may convert to fixed rate during yrs. 2-6 and the fixed rate, (5) Prepayment: Declining 3.25% in yr 2 to 1.00% (yrs 7-10); (5) Non-recourse (George A. Smith, Joel Simaie)

*(Note: GSP has a correspondency agreement with ARCS Commercial Mortgage and there is no incremental cost to originate FNMA loans through GSP)

$44,150,000 Cash-Out Refi for 3 West Side Office Buildings and a Multi-Tenant One-Story Office Park in Santa Monica (340,000 s.f.): High net worth private investor with goal of refinancing with fixed rates in the 7% range. Borrower acquired, repositioned and stabilized all properties in the last 6 years. Properties were acquired with favorable LIBOR based financing using personal credit facility. Property Profiles: Bldg #1: Class A-, 82,500 s.f., 1-story, light manufacturing multi-building industrial park in Santa Monica converted to creative office use, 60's vintage, free on grade parking, prime location proximate to the 3rd Street Mall, 90% occupied, 20 tenants. Bldg #2: Class A, 53,000 s.f., 4-story, older Beverly Hills office building modernized to customized standards, 95% occupied, 22 tenants. Bldgs 3&4 (Contiguous, Identical in Design): Class B, 200,000 s.f. (total), 5-story, late 60's construction, owner built by institutional user before becoming multi-tenant, 90% occupied, 55 tenants. One property had a low ratio CMBS loan that required defeasing. Lender offered the same spread (+230) over the 5, 7 or 10 year treasury at borrower's discretion until loan commitment. The entire file needed to be "rebuilt" subsequent to the 9/11 event, as all records are located in a "red-tagged" lower Manhattan office building. Transaction was committed and funded during a period of difficult market and physical circumstances. Terms: (1) Rate: 6.99% (Bldg. 1) and 7.06% (all others); (2) Term/Amort: 7/30; LTV: 75%; (3) DCR: 1.30; (4) Non-recourse; (5) Lender Fee: par. (George Smith, David Stepanchak)