Milken Institute President Donald Straszheim

$7,282,000 (7.23% fixed) Apartment Refinance for Borrower Coming Out of Bankruptcy. Our client originally approached us to provide financing within 30 days to pay off his debts and take cash out as part of the reorganization of the client's Personal Bankruptcy. This property was the centerpiece of an extremely complex settlement agreement involving 3 other properties and 8 partners and lenders. The agreement ultimately took 8 months to negotiate, during which time the loan application put in suspense. Our borrower then re-applied to the lender with a substantially lower treasury index and with higher cash flow, increasing his proceeds by approximately $3 million. The lender did require a lockbox to alleviate the concerns of the borrower's bankruptcy. THE LENDER STAYED WITH THE TRANSACTION BECAUSE OF THEIR RELATIONSHIP WITH GSP. Property Specs: South Pasadena, 1960 built, 96-units (50 2-bedroom, 46 1-bedroom), 99% leased. Amenities include pool, BBQ areas, laundry room, garden areas, and secured entrance. Borrower is extensively rehabbing both common areas and individual units. Terms: (1) Rate: 7.23%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.25; (5) Non-recourse; (6) Lender Fee: par (Steve Bram, David R. Pascale, Jr.)

$2,975,000 (7.80%, Fixed) for Two New 7-11's with Gas in Florida These two transactions for different borrowers were placed with the same lender virtually simultaneously. Both properties are well located along major thoroughfares near a destination resort area. The accounting firm for both borrowers was very involved in the process, customizing the loan terms and amortizations for maximum tax benefit. Property #1: Acquisition, 3,000 s.f., 1.36-acre parcel, gasoline pumps. Terms: $1,350,000 loan, 7.80% fixed, 1.15 DCR, 68% LTV, Term/Amort: 14.5/14.5. Property #2: Refinance, 3,000 s.f., 1.5-acre parcel, gasoline pumps. Terms: $1,625,000, 7.80% fixed, 1.15 DCR, 81.3% LTV, Term/Amort: 15/18. (David Rifkind, David R. Pascale, Jr.)