International Bank Needs Loans

$10,119,705 (98% of total project cost) Acquisition/Reposition Financing for Two Mid-Wilshire Apartment Complexes: GSP has arranged senior debt and equity financing for these two properties totaling 144 Units. These are our 6th and 7th transactions with these clients. The properties are 100% and 95% occupied, with below market rents. Our borrowers will undertake cosmetic improvements to both properties (common areas and units) and raise rents to market. Note: borrower's equity for both transactions is $211,851. Property #1: 104 Units (79 are "junior one bedroom"-the bedroom area is raised up a step from living room and separated by blinds), 1985 built, "A" quality, swimming pool, purchase price: $6,800,000. Property #2: 40 Units, 1986 built, "B" quality and purchase price: $2,700,000. Financing Terms: Senior Debt: (1) Loan Amounts: $5,792,765 & $2,413,243; (2) Pricing: 3 month LIBOR + 3.25%; (3) Term/Amort: 2 years/interest only; (4) 80% of cost; (5) Non-recourse; (6) Lender Fee: 1.0%, (7) Two 6 month extensions for 0.5% each. Equity: (1) Amounts: $1,350,269 & $556,392; (2) Terms: 50% participation subject to a minimum preferred return. (Steve Bram, David R. Pascale, Jr., John Lopez)

$4,314,000 Fannie Mae Financing (7.02%, fixed rate) for 66 Unit "B" Quality Apartment Building in Orange County: This cash out refinance of a "B" quality infill apartment complex was based on Tier II Fannie Mae pricing. The borrower developed the property in the mid 1980s. The higher than normal 77% LTV on cash out was achieved by the experience and long operating history of the borrower, who has a stellar track record of developing, owning and managing their properties. The property was refinanced in 2000 for substantially less, but through gradual rental increases and increase in occupancy, the owners were able to dramatically increase the net operating income. Terms: (1) Rate: 7.02%; (2) LTV: 77%; (3) DCR: 1.25; (4) Term/Amort: 10/30; (5) Non-recourse; (6) Lender Fee: 1.0%. (Mike Gottlieb)

GSP/Rifkind Capital Advisors Pops the Cork in celebration of the Grand Opening of the Siena Hotel, Casino & Spa: This distinctive property, located on the banks of the Truckee River, is the only 4 Star luxury hotel and casino in northern Nevada. The property is hailed as the crown jewel of the downtown Reno riverfront redevelopment. The opening ceremony was presided over by Governor Kenny Guinn and Reno Mayor Jeff Griffin. Rendered in a Tuscan theme, the $70,000,000 project includes a 24,000 sq. ft. state of the art casino, fine dining restaurants and a world-class wine program presided over by Barry Larvin. The property contains one of the largest commercial wine cellars in the US with over 18,000 bottles. GSP/Rifkind Capital Advisors assisted in the acquisition and was an advisor in the early planning of the project. Congratulations from all of us at GSP to the City of Reno, The Siena owners and staff for this magnificent achievement! For more information on GSP/Rifkind's Quick-Close capabilities, contact David Rifkind (ext. 111, drifkind@gspartners.com) or David Ellis (ext. 211, dellis@gspartners.com)

International Bank Needs Loans From $10MM to $100MM+: An International Bank (one of world's largest) needs construction and repositioning/bridge loans. With the current low rate permanent mortgage environment their loan portfolio is paying off faster than projected. The economic slowdown has impacted their traditional flow of new business. Construction Loans: (1) Size: $10,000,000 to $100,000,000 + (2) Property Type: All commercial categories except healthcare, hotels and condos/for-sale housing (3) Pre-Leasing: Other than multi-family will want 1.0 DCR on pre-leasing based on current floating rate pricing (4) Sponsorship: This is significant, i.e. must be experienced with the product type, strong net worth (subjective) and liquidity of 10% of loan amount (not subjective) (5) Completion Guarantees and Recourse: Recourse is structured with a declining sliding scale as DCR increases (6) Equity Requirement: minimum of 15% (could be higher depending on pre-leasing and other risk elements) (7) Pricing: 1pt origination fee, LIBOR +250-275, 1 pt exit fee (waived if bank provides permanent mortgage (8) Term: 24-36 months with negotiable extension provisions. Bridge Loans: (1) Terms are similar to construction loan. In underwriting the loan amount will look for stabilized DCR approximately 5-8% higher than if property was stabilized today and ready for permanent financing, i.e. margin for future loan market uncertainty. (2) Recourse: Typically 20%-25% of the loan amount (3) TI/LC: Will disburse 100% of cost (4) Loan is Held on Book: Lender services, monitors and disburses funds (4) Lockout and Prepayment: No lockout. 1pt prepay unless lender securitizes permanent mortgage.