Nationwide Lender Touts Float to Fixed Program

$4,775,000 Construction Loan (90% of Cost, Non Participating Debt) for 40-Unit Class "A" Apartment Building: This contemporary styled multifamily property will feature on-site amenities including: swimming pool, spa, laundry rooms, 100 spaces of subterranean parking (2.5 per unit), sub-metered utilities, and private patios/balconies in the units. Our borrower, a repeat client, was able to re-zone the property in an in-fill location within a strong submarket. GSP negotiated: (1) Land carry pre-construction loan funding to count toward equity requirement (thus reducing borrower cash requirement at loan closing); (2) A lower interest-rate floor than in original application as the Fed lowered rates during processing. Terms: (1) Loan amount: $4,775,000 (Loan per foot: $113, Loan per unit: $119,375, 80% LTV); (2) Interest Rate: Prime + 1.00% (Start Rate of 7.75%); (3) Loan to cost: 90%; (4) Recourse; (5) Term: 18 months with one extension option for 0.25% fee; (6) Amort: Interest only; (7) Lender Fee: 1.0%; (8) Mini-perm option: 5 year term/30 year amort/1.10 DCR minimum/6 month LIBOR + 2.25%. (Lee Norman, Gerald Price)

Smooth Sailing! GSP/Rifkind Capital Advisors Helps Queen Seaport Development, Inc. and Carnival Cruise to Success: This Monday, July 30, Carnival Corporation (NYSE: CCL) celebrates the groundbreaking of a new $55M passenger ship terminal and parking structure at the Queen Mary. GSP/Rifkind has been involved in the financing of the Queen Mary operations since QSDI took over the leasehold and attraction from the Walt Disney Company. GSP/Rifkind was instrumental in structuring the financial package that won QSDI a long-term ground-lease and operating agreement from the City of Long Beach. The same credit facility has funded further improvements and attractions including the interactive Ghosts & Legends tour. While expanding operations and refurbishment of the hotel, QSDI negotiated a 25 Year sublease with Carnival Corp (Carnival Cruise Lines parent). Carnival will start with a single ship, which will dock behind the Spruce Goose dome and ultimately add 2 more ships. Passengers will be able to take advantage of the attractions, shopping and restaurants before and after taking their cruise vacations. Upon completion, this brings the following to the Queen Mary: (1) 700,000 more guests to the site which already attracts 1.4 million passenger per year; (2) Substantial parking/spin off revenue; (3) A partnership and lease to an S & P "A" rated company; (4) This adds an exciting new industry to City of Long Beach and further expansion possibilities as San Pedro becomes a less desirable port of call. 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)

Nationwide Lender Touts "Float to Fixed" Program-Borrowers Lured by Rock Bottom LIBOR Rates-Interest Only--Up to 5 year Term: Start rates as low as LIBOR + 210 (5.90%)-Interest Only. The program even allows for earnouts within the floating rate period. This program is targeted at owners of stabilized properties looking for flexibility. Minimum loan size: $3,000,000. Lender is also a major CMBS originator and transactions must underwrite to conduit standards. Eligibility: (1) Good markets; (2) LTV and DCR parameters apply as if they were fixed rate CMBS at origination; (3) Property types: apartments, mobile home parks, industrial preferred. Also: anchored retail (strong grocery or investment grade anchor with remaining lease term of 10 years), office (lender stresses "selective office properties"). Program Highlights: (1) Pricing: 30 day LIBOR + 210-280; (2) Loan Term: 3 years with two 1 year options (note: 2 year term is available with a 20 bp discount in spread); (3) Interest only; (4) Conversion: Original loan docs contain conversion provisions. Borrower can convert at any time to a CMBS fixed rate loan at any time. Lender charges a processing fee of app. $6,000 which is waived if conversion is within 6 months of origination; (5) Lender fees: 0.50% Origination fee; (0.50% fee for extensions)