CONGRATULATIONS TO GSP'S LEE NORMAN! - FINfacts | George Smith Partners



Volume IX, No. 4		February 5, 2001

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	8.50%
11th District	5.61%
3 Mo. T’s (YTM)	5.06%
6 Mo. T’s (YTM)	4.95%

5 Yr. U.S. T’s	4.88%
10 Yr. US T’s	5.19%
30 Yr. US T’s	5.50%
12-MAT	6.108%

LIBOR - 1 mo.	5.57%
LIBOR - 3 mo.	5.41%
LIBOR - 6 mo.	5.27%
LIBOR - 1 yr.	5.20%

Tier 2+ (80% LTV)	7.02%
Tier 3+ (65% LTV)	6.87%
Tier 4+ (55% LTV)	6.67%
10 yr. term/30 yr. amort.


TRANSACTION OF THE WEEK!!! $6,600,000 Uncovered Construction Loan for Total Rehab of Theater into 70,000 s.f. Office Building: GSP arranged 82% of cost financing for this conversion project located in a secondary market in Texas. Our borrower purchased a closed movie theater and is converting it into a multi-tenant, "flex" office building with 350 adjoining parking spaces. The "slope" floor is being filled to a level surface and the existing walls are being retained. The property is 40% pre-leased to a credit tenant. The loan was structured as a $6,000,000 senior construction loan and a $600,000 mezzanine piece. The two loans were blended together. Terms (blended): (1) Rate: 90-day LIBOR + 3.25%; (2) Term/Amort: 12 months/interest only (w/ one 6-month extension); (3) Recourse; (4) Lender Fee: 1.0% on the senior debt (Gary E. Mozer, David Rifkind, Gerald Price)

HOT MONEY! CMBS Spreads Tighten: As Swaps have stabilized in the +80 to +85 range (after spending virtually all of 2000 at +120 to +135), many conduits are lowering their matrices. We just received the following new pricing from a major originator who cut spreads 10 bps across the board (all pricing is for a standard 10/30, priced over the 10 yr. T, for maximum leverage up to 80% LTV): Apartments (class A): 180-185, Apartments (class B): 195-205, Anchored retail (class A): 210-215, Anchored retail (class B): 225-235, Industrial (class A): 210-215; Industrial (class B): 225-235. This particular lender has instituted "floors" on the all in rate of 6.85% for apartments and 7.00% for commercial. Other lenders have indicated spread cut announcements are imminent. Stay tuned…

HOT MONEY! Single-Tenant Lender looking for Non-Retail Transactions to Balance Out Pools: This lender funds loans nationwide for single-tenant (tenant must be a public company rated by S&P-BB and above). The loans are intended for securitization. Due to an oversupply of retail and bond buyer's growing aversion to pools overweighted with retail, the lender is getting aggressive on office and industrial single tenant. Pricing and terms depend on tenant credit, location and other specs. Call for more details…

CONGRATULATIONS TO GSP'S LEE NORMAN! Gary E. Mozer: "We are proud to announce the elevation of Lee T. Norman into ownership and management of George Smith Partners. Lee has been with GSP for over 10 years-starting as a non-paid intern and growing into one of our top producers. I have worked with him as a partner on many successful transactions." Lee has specialized in arranging structured financing for large projects and portfolios. He can be reached at ext. 109 or lnorman@gspartners.com.

2001 REAL ESTATE FORECAST SURVEY Here is your opportunity to participate & compete with your fellow Fin-Fax© readers throughout the country in projecting where you feel trends, interest rates and the market will go this year. The winner will be determined by adding all of the actual numbers up in July (we will use the original calculation of 2nd Quarter GDP, not the revised one). The winner will receive a free table for 10 at the 7th Annual GSP Real Estate Luncheon to benefit the A-T Medical Research Foundation being held at the Century Plaza Hotel on November 6, 2001. Please fill out the online questionnaire no later than February 12, 2001 or fax the PDF version of the survey to (310) 557-1276. Good Luck! If you have any questions, please contact David Pascale (310) 557-8336, ext. 117

* GSP is an L.A. correspondent for ARCS Commercial Mortgage, the nation's largest FNMA/DUS originator.

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