New Floating Rate Fund Steps in to Fill the Gap

Cutting Edge Adjustable Rate Apartment Financing - GSP Funds 1st "Single Asset" DMBS Loan--$25,950,000 ARM @ 2.71% Reset Every 90 Days at a Spread Approximately 95 Basis Points Over LIBOR: The Property: Class "A" 166 Unit Apartment Building in Westwood, CA adjacent to the UCLA campus with 100% student occupancy. Built in 1986, the property was acquired in April 2001 and extensively repositioned by the borrower, both interior and exterior. The amenities include a fitness center, pool, sauna, spa, laundry, study hall, sundeck and a gated garage. The property is 100% occupied and provides quality housing for UCLA professionals and students. DMBS Program Description: DMBS financing (Discounted Mortgage Backed Security) is a 10 year adjustable rate credit facility with a 30 year amortization. It was formerly only available for cross-collateralized mortgage pools in excess of $100.0 million. The lender will now fund individual loans in excess of $20.0 million. The borrower can add subsequent loans of smaller size to the mortgage pool with each loan being a stand-alone facility. The DMBS discount rate is re-priced every 90 days. The spread remains constant for the term of loan. The rate generally trades slightly inside of the 90 day LIBOR rate because of the AAA credit enhancement. Additional terms are described below: Financing Terms: (1) Initial Interest Rate: 2.71% (discount rate of 1.76% plus servicing spread of .95%); (2) Term/Amort: 10 years/30 years; (3) LTV: 75%; (4) Gross Loan Multiplier: 10.5 X the net underwritable cash flow; (5) Loan per Unit: $156,325; (6) Cap Escrow: 85 bps. to purchase the initial 5 year cap on LIBOR based on a strike rate of 7.6%; (7) Origination Fee Including GSP: 1.00%. (George Smith, Joel Simaie)

$2,200,000 Bridge Loan-For a Partially Completed Residential Development- Lake Las Vegas Resort, Henderson, NV. Funded in 7 days from Initial Inquiry to Funding! Lake Las Vegas Resort is one of the premiere residential, golf and water recreation resorts in the US. Amenities include 3 PGA golf courses, 2 golf and beach clubs, Marinas, 400 room Hyatt Regency Resort and a new Ritz Carlton Resort currently being completed. David Rifkind has extensive knowledge of this project from its beginnings, which contributed to the quick underwriting of this transaction. Subject property: A 24 home development within the resort community. The prior owner built 10 houses and sold 6 of them. He passed away and his estate was selling the 4 unsold houses and the remaining 14 lots. The Dilemma: Our client, a homebuilder, was under contract to buy the 4 finished homes and the 14 lots for $3.2M with a closing date of Wednesday, August 28. His previous lender couldn't perform and he had no more options to extend. There were multiple, all-cash back up offers at higher prices. The Solution/Timeline: Borrower called GSP/Rifkind on Wednesday, August 21- GSP/R immediately verified value, underwrote and issued a quote at 70% LTV for the houses/50% LTV for the lots...

Terms: (1) Rate: 12.00%; (2) Term/Amort: 3 years/Interest Only; (3) Partial Release Schedule to accommodate home sales, construction and/or lot sales; (4) No prepayment Penalty; (5) No Participation; (6) Non Recourse. Baseball Tie-In: GSP/Rifkind once again provided assurance of close and terms that allow a developer to take advantage of an unusual opportunity and hit a HOMERUN! (David Rifkind, David Ellis, Frank Blum) For more information on GSP/R programs contact David Rifkind drifkind@gspartners.com (x 111) or David Ellis dellis@gspartners.com (x 119).

New Floating Rate Fund Steps in to "Fill the Gap" Left by Industry Dynamics & Consolidation: With recent mergers, department closings, etc, there aren't as many classic "Credit Company" entrepreneurial floating rate lenders left standing. This new fund, being managed (with full discretion) by a major nationwide lender is stepping up to the plate. Typical transaction: Lender is targeting acquisition/reposition/value added transactions for distressed office properties nationwide (high vacancy, empty buildings ok-lender will fund at below break even DCR with interest reserve). Multifamily, industrial and retail properties are also eligible. Program Highlights: (1) Deal Size: $10,000,000 to $30,000,000 (some larger transactions will be considered); (2) Rate: 30 day LIBOR + 4.00% with a floor of 6.50-7.00%; (3) LTV: Up to app. 65% of cost or value; (4) Loan Terms: 3-5 years (no extension fees for 5 year loan terms); (5) Amort: Interest Only for most transactions, amortization may be needed depending on transaction specs; (6) Non-recourse; (7) Portfolio Lender: Lender services loan for entire term; (8) Lender Fee: 1.0%--No exit fees! No participation!