Land Loans From Institutional Lender

KEY RATE INDICES FANNIE MAE RATES * Prime Rate 8.00% 11th District 5.426% 3 Mo. T’s (YTM) 4.24% 6 Mo. T’s (YTM) 4.08% 5 Yr. U.S. T’s 4.55% 10 Yr. US T’s 4.90% 30 Yr. US T’s 5.45% 12-MAT 5.871% LIBOR - 1 mo. 5.07% LIBOR - 3 mo. 4.87% LIBOR - 6 mo. 4.71% LIBOR - 1 yr. 4.66% Tier 2+ (80% LTV) 7.05% Tier 3+ (65% LTV) 6.87% Tier 4+ (55% LTV) 6.67% 10 yr. term/30 yr. amort. TRANSACTION OF THE WEEK $25,000,000 Uncovered Construction Financing on 4-Story, 150,000 s.f., Single Tenant Build-to-Suit in Northern California: GSP has arranged 62% of cost, partial recourse construction financing for an architecturally distinctive, Class A office building. The borrower delivered a "warm-shell" to the tenant who at its own expense will provide $8,000,000-$10,000,000 of general purpose office improvements. The hi-tech related tenant signed a 13 year lease. Non-investment grade single tenant properties are a challenge to finance in today's capital markets. The lender became comfortable with the transaction due to the strength of the borrower and the tenant's business plan. The recourse is limited recourse to the upper 10% of the loan amount only. Terms: (1) Pricing: 30-day LIBOR + 2.25%; (2) Term/Amort: 24 months/interest only (w/ extension options); (3) Lender Fee: 1.0%. (Gary E. Mozer, Peter Smyslowski) $5,100,000 Acquisition/Renovation Loan Converting to CMBS Fixed Rate Loan for 49,000 s.f. Single-Tenant Building Located in Downtown LA: The tenant is a large established furniture-electronics chain based in Mexico currently with limited US assets, which is opening several stores in the Los Angeles/Orange County area. The tenant has no S&P credit rating. Timeline: (1) Borrower had the building under contract to purchase; (2) Borrower agrees to turn the building over to the tenant at close of escrow; (3) The tenant then installs its own TI's and renovations; (4) Borrower reimburses tenant upon completion. GSP arranged financing with a single lender that provided a short term acquisition/renovation loan that automatically converts to a CMBS fixed rate loan upon tenant occupancy and store opening. To offset the risks associated with this type of single tenant transaction, a long-term renewable letter credit (with pre-determined release provisions) was obtained from the tenant to benefit both the borrower and the lender. The loan provided an interest reserve during the fixturization period with holdbacks for TI's and other approved costs. Terms During Fixturization: (1) Pricing: 10 year T + 2.85%; (2) Term/Amort: 3 months/interest only; (3) 85% loan to cost; (4) Entity completion guarantee; Permanent Terms: (1) No new documentation is required (automatic conversion) and rate remains set at 10-year T + 2.85%; (2) Term/Amort: 10/22.5 (3) LTV: 72%; (4) DCR: 1.26; (5) Non-Recourse; (6) Lender Fee: Par. (Gene Brunkhardt, Gary E. Mozer) HOT MONEY! Land Loans From Institutional Lender: Will consider both entitled and unentitled land with identified development exit strategy. Loan Size: Up to $10MM. Loan-to-Value: (1) Unentitled - to 50%; (2) Entitled (raw) - to 65%; (3) Entitled (finished) - 75%; (4) A&D: To 75% of finished lot value. Note that this is not loan-to-cost and is particularly applicable to borrowers who have taken properties through the entitlement process and changed property values. Pricing: Best pricing @ Prime plus 1%. Lender Fee: 1 pt. Term: 18 months. Payments: Interest only; interest is not reserved out of loan proceeds and paid "out of pocket" by borrower. Recourse: Yes. Partial Releases: If property is subdivided, will release individual parcels at 120 of par. Closing: 60 days. Quality of Land Collateral: Selective; limited funds under this program. CMBS Lender With 5 Year Fixed Rate Money and Flexible Pre-Pay: Lender with limited funds available for next pool. Have quoted office building loan for us on following terms: Loan-to-Value: 80%; Term: 5 years; Amort: 30 years; DCR: 1.25-1.30; Rate: 10 yr. T's + 231; Pre-Pay: Closed yr 1; then 3%, 2%, 2%, open. Ideal for borrowers seeking flexibility with fixed rate financing. * GSP is an L.A. correspondent for ARCS Commercial Mortgage, the nation's largest FNMA/DUS originator. Note: Lender pricing and loan points are subject to change and exclude GSP loan placement fees.