GSP Rifkind Closes First Transaction - FINfacts

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	4.75%
11th District	2.847%
3 Mo. T’s (YTM)	1.60%
6 Mo. T’s (YTM)	1.58%

5 Yr. U.S. T’s	3.25%
10 Yr. US T’s	4.25%
30 Yr. US T’s	5.11%
12-MAT	2.414%

LIBOR - 1 mo.	1.78%
LIBOR - 3 mo.	1.75%
LIBOR - 6 mo.	1.75%
LIBOR - 1 yr.	1.85%

Tier 2+ (80% LTV)	6.11%
Tier 3+ (65% LTV)	5.93%
Tier 4+ (55% LTV)	5.73%
10 yr. term/30 yr. amort.

TRANSACTION OF THE WEEK!

$10,200,000 Permanent Financing (6.41% fixed) for 116,000 s.f. Class A Multi-Tenant Industrial Building: GSP has arranged financing for this brand new industrial building located in Southern Los Angeles County. The property is part of a large master planned industrial complex. Property Specs: 116,000 s.f., 24 foot clear heights, 18 dock high doors, 100% occupied, 6 tenants, prime industrial location. Owner/User Component: The borrower owns two holding companies, both of which are headquartered in the subject property-24,000 s.f. of completely built out, high-end office space and 6,000 s.f. of industrial. Challenges to Financing: (1) Difficulty obtaining comparable rents (our property commands top of the market rents due to location and quality); (2) Borrower's holding companies rent 25% of space, but contribute 40% of income due to quality of the build out. Most of this space was underwritten as Class A office. Note: Borrower space also includes a gym and full size basketball court! The new financing was used to pay off the construction loan and all associated costs. GSP negotiated a lower floor as treasuries fell and spreads narrowed during processing. Terms: (1) Rate: 6.41% (10 year T + 2.05%); (2) Term/Amort: 10/30; (3) LTV: 78%; (4) DCR: 1.40; (5) Non-recourse; (6) Lender Fee: Par. (Henry Bryan, George Smith)

City Redevelopment Agency Uses $10,000,000 GSP Arranged CMBS Loan in Lieu of Bond Financing to Save Time and Money: A city redevelopment agency located in Southeast Los Angeles County financed the land under a 30 tenant, 100% leased, neighborhood shopping center to obtain money to fund additional projects for the redevelopment agency. The CMBS closing costs of $25,000 were substantially below the $200,000 cost for underwriting a municipal bond issue. Tenants included a 52,000 s.f. grocery store, a 19,000 s.f. drug store, 10,000 s.f. sporting goods store, and a mix of local and national in-line tenants. The unsubordinated ground lease has 40 years remaining. Terms: (1) Rate: 10 year T + 1.75%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.26; (5) Non-recourse; (6) Lender Fee: par (7) Closing costs: $25,000. (Steve Bram, John Lopez, David R. Pascale, Jr.)

$12,300,000 Application For Free Standing, Owner Developed Multi-Plex Theatre: Application processing for regional owner/developer/operator of multi-plex theatres to refinance of a 5 year old, stand-alone multi-plex theatre. The theatre, built in 1997 is not part of a community shopping center or shadow anchored by a big box retailer. The theatre has had consistent year-to-year gross sales and EBITDA. Lender will consider additional theatres with a minimum three year track record and "all stadium seating". Value was based upon bifurcating EBITDA into two components: (1) Theatre business operations and (2) real estate operations, i.e. if theatre was leased to an operator instead of owner-operated. Terms: A 25 year amortization schedule was offered @ 7.75% but declined in favor of a lower rate with a shorter amortization (1) LTV: 70% (2) DCR: 1.25 (3) 7.50% fixed (4) 20 year amortization (5) 5 year term (6) Recourse (7) 1 point lender origination fee. (8) Prepayment: 3,2,1,0,0 (David Stepanchak, George Smith)

GSP/Rifkind Round-Up!

GSP Rifkind Closes First Transaction of 9 Property Restaurant Portfolio: Challenged by special purpose nature of this unique transaction, our client was unable to find conventional financing to close an opportunity purchase in time. GSP Rifkind Capital Advisors structured a real estate loan for the 9 properties for approximately $13,000,000. The properties are located in Southern California. Challenges to financing: We are basing valuation on the real estate only and placing no value on the operating business. Navigating 9 separate closings and sellers in a short timeframe. Many of the properties are highly improved as restaurants, thus the dollars per s.f. are high and the uses are special purpose. GSP/R inspected all of the sites, quoted and delivered a term sheet and was prepared to go to loan documents within 48 hours of being introduced to the transaction. Terms: Fixed rate, 5 years, interest only, no prepayment penalty, no cross collateralization, non-recourse. Use GSP/Rifkind's quick-close capability to create value in your transaction. For more info, contact David Rifkind (ext. 111 drifkind@gspartners.com) or David Ellis (ext. 211, dellis@gspartners.com).