$25,500,000 Permanent Financing

$25,500,000 ($22,000,000 Senior/$3,000,000 Mezz) Permanent Financing for 3 Outlet Malls in “Very Tertiary” Locations: These 3 sprawling outlet malls are located in Minnesota, Michigan and Nevada and total over 600,000 s.f. Property Specs: (1) Minnesota: 223,000 s.f., approximately 40 tenants; 83% occupied; (2) Michigan: 225,000 s.f.; approximately 60 tenants; 72% occupied; (3) Nevada: 256,000 s.f.; approximately 60 tenants; 89% occupied. Challenges to Financing: (1) Company owns 12 outlet malls, 6 of them are in default and being re-structured by current lender; (2) The loans on the subject properties were overdue and in default. Extension agreement with lender forced borrower to place deeds-in-lieu in escrow. New financing had to be procured to stave off a taking by lender; (3) Some properties were “surrounded by cornfields”; (4) Outlet malls are not a favored product type at this time. Borrower had been to market on their own before contacting GSP and was unable to find a lender. GSP was able to source financing with an A/B structure. The CMBS lender underwrote a low leverage “A” piece that was able to be securitized in their pool. They also funded a 3 year self amortizing mezzanine or “B” piece to get to 65% LTV overall. Note: the borrower also had to find private placement financing on a separate property in order to pay off the existing debt. Terms: Senior Debt: (1) Amount: $22,000,000; (2) Rate: 7 year T + 3.00%; (3) Term/Amort: 7/25. Mezzanine: (1) Amount: $3,500,000; (2) Rate: 17.00%; (3) Term/Amort: 3/3. Overall: (1) LTV: 65%; (2) DCR: 2.0%; (3) Non-recourse; (4) Lender Fee: Par; (5) Cross-collateralized. (Steve Bram, David Pascale, John Lopez)

$4,400,000 Acquisition Financing for 14-Unit Courtyard Apartment Complex in West Hollywood. $314,000 per Unit! This 14-Unit property is located in the historic Crescent Heights district. The property was built in the mid-1990’s featuring Spanish courtyard architecture reminiscent of the 1920’s vintage properties in the area. Features Include: (1) Spanish courtyard style; (2) Lush landscaping; (3) 2 BR, 2.5 Bath Units with lofts, private rooftop decks and enclosed sleeping porches; (4) Property was acquired with an existing condo-map. The property boasts the premier rental townhomes in the submarket with rents at the property averaging in excess of $3600 per unit per month. This transaction was completed within 35 days of application. Terms: (1) Rate: 10-Year Treasury + 1.85% (6% floor); (2) Term/Amort: 10 years/30 years (Actual/360); (3) LTC: 72.5%; (4) Non-recourse; (5) Lender Fee: Par. (Andy Levant, Shlomi Ronen)

$3,785,000 Refinance (80% LTV) for Cohen Asset Management’s 3 Property Industrial Portfolio in Major Midwestern City: GSP has arranged permanent “cash-out” financing for this 300,000 s.f. industrial portfolio consisting of 3 separate buildings located on 3 separate contiguous lots. The mid 1960’s vintage properties are “classic warehouse” with minimal office build-out—18’+ clear heights, several dock-high doors, etc. Occupancy: 100% occupied, 4 tenants occupy the 3 buildings, 2 of which are “name” tenants. Submarket: 95% average occupancy. Properties were cross-collateralized. Issues: (1) GSP worked with lender to overcome valuation issues; (2) Lender was able to fund despite pending lawsuit, (3) No earthquake or terrorism insurance required. Terms: (1) Rate: 10 year T + 2.25%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.25; (5) Non-recourse; (6) Reserves: Minimal; (7) Lender Fee: Par. (Gary E. Mozer, Lee Norman, Gerald Price)