$17,600,000 (7.40%, 30/10)

$17,600,000 (7.40%, 30/10, Fixed Rate, $269/ft.) for Champion's Ross/Sav-On Anchored Brentwood Place: Brentwood Place (65,500 s.f. of rentable on a 1.41 acre assemblage) is an innovative high density in-fill urban retail center with 510 ft. of Wilshire Blvd. frontage anchored at one end by a two-story Ross and at the other end by a one-story Sav-On with seven in-line stores including Starbucks, Jamba Juice, Gateway Computer, Pac Bell and Rubios. There are 3 levels of above grade parking over the retail, but with the appearance of a large Italian Renaissance themed structure complete with bell tower. Shoppers use escalators and oversized elevators and the configuration has proven to be user friendly. Over $100,000,000 for Champion: This financing brings GSP's loan placement volume for Champion Development to more than $100,000,000 including: (1) land acquisition loans, (2) construction loans, (3) participating mezzanine debt, and (4) permanent mortgages. GSP had arranged both the construction loan and participating mezzanine debt for Brentwood Place. Terms: (1) Amount: $17,600,000; (2) Rate: 10 yr. T's + 2.20%; (3) LTV: 73% with low cap rate because of Brentwood location; (4) DCR: 1.20; (5) Non-recourse; (6) Lender Fee: Par. (George A. Smith, Gary E. Mozer, Joel Simaie)

$12,500,000 "Recast" Condo-Conversion Loan (39 High-Rise Units on Wilshire Corridor): GSP originally arranged a $17,800,000 non-recourse, interest only loan for the acquisition of 53 condominium units located within a 132-unit high rise on the "Golden Mile". After 30% of the units were sold and the loan was paid down from 75% LTV to less than 40% LTV, GSP arranged a new loan with the existing lender which enabled the borrower to pull out $2,000,000 in equity, and replenish both the interest reserve and rehab budget. New Loan Terms: (1) Rate: Prime + 1.5%; (2) Term/Amort: 24 months/interest only; (3) Lender Fee: 1.5% on the equity recaptured only; (4) Non-recourse; (5) Partial Release Provisions: 100% of net proceeds. (Andrew Levant)

$4,800,000 Refinance (80% LTV, 7.00% Fixed Rate) for 60-Unit Apartment Complex in Pasadena: This 1960's vintage multi-family property has been owned by our borrower for approximately 25 years. It features large 2 and 3 bedroom units and is 100% occupied. Rents are slightly below market. GSP arranged financing which offers an attractive fixed rate and flexibility for the borrower. Sid Wallis, our 81-year old Chairman Emeritus, placed this loan. George Smith: "Sid now runs our newly formed Vintage Property Department as he was in the business while they were building them." Sid worked with a loan officer at a portfolio lender that he's done business with for 25 years. Terms: (1) Rate: 7.00% for 3 years, then 12 MAT + 2.40%; (2) Term/Amort: 30/30; (3) LTV: 80%; (4) DCR: 1.20; (5) Prepayment: 3% year 1, 2% year 2, 1% year 3, then prepayable at par; (6) Lender Fee: 1.0%; (6) Non-recourse. (Sid Wallis)

Treasuries rallied Thursday and Friday of this week after holding at 5.50% earlier. The 10-year closed today at 5.36%. Why? Market fears have switched: last week it was inflation, this week it's recession. Economic reports (from the two major purchasing manager's indices) indicate continued weakness in the manufacturing sector. The consensus view is switching from a "V" shaped recovery to a slower "U" shaped recovery. Bond buyers are now counting on less price volatility and further rate cuts by the Fed. CMBS: Spreads remain tight even after a $10 billion month in May (the first since late 1998). Also, investment grade corporate bond sales set a record in May: $80.65 billion. Even with all this product in the pipeline, originators were able to get tighter spreads. A $1 billion fixed rate pool 10-year AAA's priced at Swaps + 48 and a slightly smaller pool priced the same tranche at Swaps + 46. How is the market absorbing all these fixed rate bonds? Major money managers continue to move funds from stocks to bonds. Most issuers predict that demand will remain strong as this trend should continue over the next few months…. Stay tuned…(David R. Pascale, Jr.)

Luncheon III of the 2001 GSP Executive Luncheon Series (to benefit the A-T Medical Research Foundation) will be held on Wed., June 20th.

Our keynote speaker will be Donald Straszheim of The Milken Institute.

If you are not already a member and are interested in subscribing to the remainder of the Series (and securing your Preferred Table of 10 at our Annual Luncheon), please contact Shannon Bradley (ext. 120) for further information.