$28,500,000 Re-Bridge

$28,500,000 "Re-Bridge" (Non-Participating) for 61% occupied, 2.5 million s.f. Industrial/Office Complex on Leasehold in Northern California Secondary Market: GSP has arranged new bridge financing for the continued expansion of a redevelopment of a conversion of a 1950's vintage military installation. Timeline: (1) Property was built in the 1950's as a military warehouse facility including offices, "cross docking", rail access and 3 phase power suitable for heavy manufacturing; (2) Major computer company purchased the majority of the property leasehold interest in 1995 and used the property for computer manufacturing; (3) The company downsized in 1999 and sold their entire interest (2 million s.f.) to our client, who leased back approximately 8% of the space to the downsized computer company; (4) During 2000-2001, our borrower leased over 1 million square feet to local, state, national and international tenants; (5) Borrower then negotiated purchase terms for two additional buildings on the site totaling over 500,000 s.f., bringing the total to 2.5 million; (6) "Re-Bridge": This new loan took out the existing acquisition/bridge loan, while recognizing the value added since acquisition. The new financing allocated funds for new capital improvements, acquisition of two additional buildings plus tenant improvements/leasing commissions for lease up of the vacant space. GSP arranged financing with a specialized boutique bridge lender after the transaction fell out of application with a major thrift. The new lender acted expeditiously (submission to funding in 4 weeks including all new 3rd parties, in order to meet borrowers deadlines). Terms: (1) Rate: 30 day LIBOR + 3.50%; (2) Term/Amort: 3 years, interest only; (3) DCR: 1.25; (4) LTV: 70%; (5) Recourse limited to $5 million; (6) Lender fee: 1.0% (1.0% exit fee). (J. Jay Brooks)

$1,425,000 Acquisition Loan for Multi Tenant Industrial Building with Mini Storage Component in Tempe, AZ. This CMBS Loan Closed in 45 Days from Application to Funding: Challenges: (1) Industrial usage combined with mini storage usage; (2) Borrower required environmental carve out to be recourse to an entity. Terms: (1) Loan Amount: $1,425,000; (2) Rate: 10 Yr T + 2.35%; (3) Term/Amort: 10/30; (4) Loan-To-Value: 69%; (5) DCR: 1.45; (6) Non-recourse with environmental carve out to an entity; (7) Lender Fee: Par. (Gene Brunkhardt)

George Smith will be speaking on the state of the real estate capital markets at the Law Offices of Skadden, Arps, Slate, Meaghler and Flom on Tuesday, September 25, 2001. For information on Mr. Smith's speaking availability, please contact Jim Neuman, Director of National Business Development at ext 106 or jneuman@gspartners.com

The 10 year T hit a bottom this week of 4.86%. The Fed cut on Tuesday was considered a "neutral" event, i.e. it wasn't the ½ point cut many were hoping for, but the Fed left the door open for more cuts this year. Strong economic news today (Cisco earnings and expectations) caused a stock rally and bond sell off, driving the 10 year yield up to 4.91% at the close…Stay tuned…(David R. Pascale, Jr.)