STEVE BRAM APPOINTED PRESIDENT - FINfacts | George Smith Partners



Volume IX, No. 9		March 16, 2001

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	8.50%
11th District	5.514%
3 Mo. T’s (YTM)	4.52%
6 Mo. T’s (YTM)	4.37%

5 Yr. U.S. T’s	4.49%
10 Yr. US T’s	4.77%
30 Yr. US T’s	5.27%
12-MAT	5.871%

LIBOR - 1 mo.	5.00%
LIBOR - 3 mo.	4.90%
LIBOR - 6 mo.	4.72%
LIBOR - 1 yr.	4.67%

Tier 2+ (80% LTV)	6.87%
Tier 3+ (65% LTV)	6.69%
Tier 4+ (55% LTV)	6.49%
10 yr. term/30 yr. amort.


TRANSACTION OF THE WEEK!!! $26,000,000 Permanent Loan for 186-Unit Limited Service Flagged Hotel in West Los Angeles: GSP has arranged two-tiered permanent financing for a limited service/extended stay hotel with only two years operating history. The property was converted from a prior non-hotel commercial use. All 186 suites are fully furnished with separate living and sleeping areas and full kitchen. Common area amenities include: 2 large meeting rooms, banquet & lounge area, exercise room/spa, indoor pool, laundry facilities, etc. This property type is among the most challenging to finance in today's lending environment. The lenders became comfortable with the overall strength of the property's location, operating history, national chain affiliation and sponsorship. The financing was structured in two tranches-a senior fixed rate CMBS loan and a floating rate mezzanine loan secured by partnership interests. The financing enabled our borrower to pay off an existing bridge loan plus all associated transaction costs. Financing Terms: Senior Debt: (1) Loan Amount: $24,500,000; (2) Pricing: 10-year T + 2.95%; (3) Term/Amort: 10/30; (4) LTV: 60%; (5) DCR: 1.40; (6) Non-recourse with carve-outs to the borrowing entity only; (7) Lender Fee: Par. Mezzanine Debt: (1) Loan Amount: $1,500,000; (2) Pricing: 6-month LIBOR + 3.50%; (3) Term/Amort: 7/25 with a 3 year extension option (making it co-terminus with the Senior); (4) Limited recourse for 2 years, thereafter non-recourse; (5) Mezz. Lender Fee: 1.0%. (Andrew Levant, Gary E. Mozer)

$6,800,000, 7.31% 30/10 For Newly Completed Malibu Beach Modern Office Building: GSP has placed permanent mortgage financing on the Enclave, the first commercial building built in Malibu, California in the past 10 years. The building, approx. 23,476 s.f., is a contemporary architectural masterpiece that is expected to receive considerable design recognition. 100% pre-leased prior to completion of construction, the building was envisioned as a "retreat" for high net worth Malibu residents seeking executive office space with design quality equivalent to their multi-million dollar residences. Instead, 70% of the building was leased to JAKKS, a NYSE company that is Malibu-based and one of the leading toy companies in the country. The developer was Winco Asset Management (Richard Shapiro) and the partnership included several Malibu residents who are also tenants in the building, having constructed the property as a place to relocate their businesses for long-term occupancy. One of the difficulties in the appraisal was lack of direct comparables because this is both the highest quality office building in the sub-market and there were no new buildings built in more than a decade. The appraisal cap rate was 8.75%. Building Features: (1) Steel frame, 2-story, 14-foot high 2nd floor with curving wood-beamed ceilings and 10-foot high 1st floor spaces; (2) Single loaded, ocean view, extensive use of glass and large private balconies; (3) A private executive gym; (4) Ample on-site tenant self-storage; (5) Flag lot, hillside on a bluff with commanding 180 degree ocean panoramas. Financing Terms: (1) Loan Amount: $6,800,000; (2) Rate: 7.31% fixed rate (235 over 10 yr. T's, on-the-run); (3) Term: 30/10; (4) DCR: 1.30; (5) LTV: 78%; (6) Non-recourse. (George A. Smith, Henry Bryan, Joel Simaie)

STEVE BRAM APPOINTED PRESIDENT OF GEORGE SMITH PARTNERS, INC. Steve Bram, one of the six founding partners of GSP, was recently appointed as GSP's President. Steve, like all of the GSP partners, will continue his production activities in addition to assuming the responsibilities as chief operating officer. Steve has worked with George Smith for 17 years and has consistently been one of the company's 3 top producers. Since the company's formation in July 1992 GSP has grown from 8 to 22 producers, opened satellite offices in Orange County and Anchorage, AK, and has firmly established its reputation as one of the leading real estate investment banking companies in the United States. Steve's corporate focus will be on the continued growth of the company including the possible opening of new offices. Shannon Bradley has been promoted to GSP's Administrative Manager, replacing Peter Smyslowski who is moving full-time into production. Shannon has been with GSP for over 8 years and many of you have interfaced with her because of her responsibilities in the day-to-day organization of the Annual ATMRF Real Estate Luncheon and the GSP Executive Luncheon Series. Gary M. Tenzer, Executive Vice President, has agreed to become the corporate broker of record in addition to being "Chief Technology Guru." And no….. there is no truth to the rumor that George Smith was last seen on the beach in Fiji. In 2000, George had his 2nd largest year in his distinguished 33 year career and continues to be the company's visionary leader and industry humorist and raconteur.

* 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.

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