Local portfolio lender has issued commitment

$31,300,000 Conference Center Leasehold Construction Financing for Affiliate of Lowe Enterprises: In spite of the post 9-11 financing problems plaguing the hospitality industry, properties that: (1) are well capitalized; (2) have strong sponsorship; (3) have barriers to entry with superior functional and architectural characteristics and (4) are conservatively underwritten- are sought after and priced by lenders. The subject property enjoys these characteristics, was well received, the subject of competitive bidding and received LIBOR based non-recourse financing subject to lien fee completion and certificate of occupancy. Property Specs: A to-be-built, 4-star quality, 210 room resort and conference hotel on a 9.5 acre parcel. The design will be "Old California Spanish" incorporating some of the existing adobe buildings on the site. The location is on North Torrey Pines Road in La Jolla, built on a 65 year ground lease from the Regents of the University of California. It is adjacent to the University of California at San Diego and the Salk Institute. The Torrey Pines Golf Course is less than 2 mile to the north. It has absolute "barriers to entry" for competitive product and is designed to specifically meet the most rigid standards of the conference center industry. Manager: Destination Hotels & Resorts, Inc, a wholly owned subsidiary of Lowe Enterprises, manages 29 properties comprising approximately 7,000 hotel rooms. In the San Diego area, DH&R manages the world famous Hotel Del Coronado on Coronado Island and the L'Auberge Hotel and Spa in Del Mar. Opening: 2nd Quarter 2004. Capitalization: A single asset LLC including principals of Lowe, a major insurance company and several high net worth individuals. The loan to cost is approximately 51.5%. Financing: (1) Pricing: 30 day LIBOR + 3.5% during years 0-3; (2) Term/Amort: 3 years/interest only; (3) Extensions: 2 1- year extensions; (4) Lender Origination Fee: 1 pt.; (5) Rate Cap: 8.25%. (George Smith, Gary M. Tenzer)

$6,880,000 (80% LTV) Cash Out Fixed Rate Financing for Just Renovated 200-Unit Apartment Complex in Las Vegas: The Borrower acquired the subject property in dilapidated condition with 50% vacancy in April 2001. Over a 15 month period the property was fully refurbished both inside and out and stabilized at over 90% occupancy. GSP arranged financing to replace the $4.9 million in existing debt that was assumed by our client at acquisition. Our financing returned approximately $2 million in equity to our clients invested in the acquisition and renovation of the property. The financing was underwritten on 3 months of stabilized operating history. Loan was closed in 34 working days from the date of application to accommodate a prepayment window on the existing loan. Property Specs: (1) Built in 1981; (2) Located in East Las Vegas on 8 acres; (3) 200 units in eight 2-story, buildings with a mix of 1, 2, & 3 Bedroom units; (4) Amenities include two pools, a barbecue area, and a playground. Terms: (1) 10-Yr. T + 1.75% with a floor of 5.85%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.25; (5) Prepayment: Defeasance; (6) Non-Recourse; (7) Lender Fee: Par. (Andrew Levant, Shlomi Ronen)

$3,465,000 Fannie Mae Floater (3.74% Start Rate) for 87-Unit Multifamily Complex in Tarzana: GSP has arranged an adjustable rate refinance for this 1970's vintage, 2-story "walk up", low-rise, multi-building complex. Amenities include swimming pool, laundry, etc. Borrower chose floating rate for prepayment flexibility. Terms: (1) Start rate: 3.74% (8.24% lifetime cap); (2) Tier 4+; (3) Term/Amort: 10/30; (4) LTV: 55%; (5) DCR: 1.55; (6) Prepayment by year (Locked, 2.50%, 2.25%, 1.75%, 1.25%, 1.00%, 1.00%, 1.00%, 1.00%, 1.00%); (7) Non-recourse; (8) Lender Fee: 1.00%. (Andrew Levant, Shlomi Ronen)

$950,000 Acquisition Financing for 7,410 square foot strip shopping center in Hollywood, CA: This center was built in 1987 and is 100% leased to 7 tenants, all local businesses. The majority of the leases are MTM or expiring in 2005. Challenges: Lender required a leasing reserve holdback. GSP negotiated debt service guaranty for 3 years instead. Terms: (1) Rate: 6 month LIBOR + 3.00% (5.00% floor, 10.00% ceiling, maximum yearly increase: 1.00%); (2) Term/Amort: 10/30; (3) LTV: 65%; (4) DCR: 1.25; (5) Non-recourse; (6) Convertible to fixed rate at any time for 3, 5 or 7 year term at 3.00% over comparable T; (7) Prepayment penalty: 3,2,1,0; (8) Lender Fee: 0.5%. (Michael Schwartz)

"On the Run/Off the Run" Treasury Update: Long time FinFax readers will recall us advising borrowers to "watch the Treasury" in loan applications. Lenders will often quote a specific treasury by the maturity date. As time goes on, the "older" treasury is referred to as "off-the-run" and usually trades 3-6 bps higher than the most recent issue...but not always! The U.S. Treasury just issued a new 10 year T, maturing November 2012. This bucks the recent trend of twice a year issuance in February and August only-the government needs to borrow more often these days. As of today, the "off-the-run" 10 year T (maturing August 2012) is actually trading 1-2 bps lower than the new issue. So some borrowers are actually benefiting from being priced "off-the-run". (David R. Pascale, Jr.)

Local portfolio lender has issued commitment for 75% of Acquisition Price Financing for new 24 Hour Fitness Center. Lender has also issued term sheets for acquisition financing on two other 24 Hour Fitness Centers for different borrowers. All three sites have been open and operating for approximately one year. Lender has additional funds available for a limited number of other 24 Hour Fitness Centers in select major metropolitan cities west of the Mississippi. Terms: (1) Rate: 7.25%, fixed (2) Term/Amort: 5/25; (3) LTV: 75%; (4) Lender fee: 1.0%; (5) Recourse.

Congratulations to GSP's John Lopez and wife Melissa on the birth of their baby girl! Highlights: (1) Name: Mary Madison Lopez (she goes by Madison); (2) Weight: 8 lbs., 7 oz; (3) Length: 19.5 inches; (4) Date/Time: November 17, 2002, 12:33 pm; (5) Mom: resting comfortably...