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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
4.00% |
| 11th District |
2.018% |
| 3 Mo. T’s (YTM) |
0.94%
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| 6 Mo. T’s (YTM) |
0.99% |
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| 5 Yr. U.S. T’s |
3.15% |
| 10 Yr. US T’s |
4.26% |
| 30 Yr. US T’s |
5.17% |
| 12-MAT |
1.342% |
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| LIBOR - 1 mo. |
1.12% |
| LIBOR - 3 mo. |
1.14% |
| LIBOR - 6 mo. |
1.18% |
| LIBOR - 1 yr. |
1.34% |
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| Tier 2+ (80% LTV) |
5.86% |
| Tier 3+ (65% LTV) |
5.68% |
| Tier 4+ (55% LTV) |
5.48% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK!
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| $39,000,000 (80% LTV) for 280,000 sf. Class-A Multi-Tenant Office in Anchorage: Our Pacific Northwest office has arranged financing for this early 80’s vintage, 14 story office building. The landmark property in midtown Anchorage features a mirrored exterior (which is unusual for Alaska). Property includes a 3 story parking structure. The tenant roster includes multinational corporations, investment banks, government, and local businesses (35% of the space is leased to a single government tenant). Occupancy: 98%. The refinance took out the existing pension fund financing on the property at a much lower interest rate. Key to the transaction was identifying a lender/B piece buyer combination comfortable with Alaska. Terms: (1) Rate: 10 year T + 2.50%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.30; (5) Non-recourse; (6) Lender Fee: Par. (J. Jay Brooks) |
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| $30,000,000 ($395 Loan/sf., 75% LTV) Permanent Financing for 3 Property, Scientific Lab Space Portfolio Totaling 75,969 Rentable sf.: GSP arranged $30,000,000 of permanent financing for three properties located in Maryland. The loan required extensive structuring, including a potential cash flow sweep. Challenges to securitization included: (1) high loan amount per sf.; (2) receipt of notice during the application period that a large, credit tenant intended to vacate a significant portion of the space despite 8 years remaining its lease term; (3) the unique nature of lab space; (4) the relatively limited cash flow of many biotech tenants, which invest significant sums in research and development; and (5) the tax structure in Maryland, which imposed a tax upon transfer of title to the required SPE. Release provisions for two of the properties and collateral substitution rights were also negotiated on behalf of the client. Financing: (1) Pricing: 10-Year T + 1.90%; (2) Term/Amort: 10/30; (3) LTV: 75.00%; (4) Prepayment: locked for 3 years, then yield maintenance; (5) Non-Recourse; (6) Lender Fee: Par. (Gary E. Mozer, Lee Norman, Larry Wilemon) |
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Hot Money!
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| Very Unique Program for Mezzanine Financing on Single Tenant Properties: GSP has identified a new capital source with an innovative program for monetizing “trapped equity” behind first mortgages on single tenant transactions. Lender underwrites to a 1.0 DCR with a rate as low as 6.0%!! The mezzanine “loan” is not secured by a 2nd TD, partnership interest or any type of real estate lien at all. The financing is secured by a junior assignment of lease or a junior assignment of cash management account. Acceptable tenants: S&P rated BB or above or private companies (lender will review financials). Highlights: (1) Mezzanine Amount Range: $700,000 to $10,000,000; (2) Rate: 6-10% fixed; (3) Combined DCR: 1.0 (No LTV constraint); (4) Self Amortizing Structure: Maximum term/amort is the shorter of the senior loan term or the remaining lease term; (5) Vacant properties are OK as long as tenant is paying rent; (6) Lender Fee: 2.0%; (7) Prepayment: Yield Maintenance; (8) Will use 3rd party reports from Senior Lender; (9) Mezz financing does not have to be arranged simultaneous with senior loan. |
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| International Securities Firm is Offering Secured Lines of Credit at LIBOR +2.86%: The lines are secured by securities- stocks, bonds or mutual funds. They can fund the line in a matter of days with no closing costs or fees to the lender. As much as 90% LTV is available for bond investments. Program Highlights: (1) Loan Size: $500,000 and above; (2) Start Pricing: LIBOR +2.86% (no floor); (3) Amort: Interest only; (4) Prepayment: Par; (6) Recourse (recourse to an entity is OK); (7) Funds need to be invested in assets other than traded securities; (8) Geographic: USA. |
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| REGISTER ONLINE NOW!! |
| http://www.gspartners.com/at
Thurs., October 23, 2003
The GSP Real Estate Luncheon
to benefit the A-T Medical Research Foundation
will be held on Thurs., Oct. 23rd at the Century Plaza Hotel.
This year, George Smith will be moderating an “All-Star Economist Panel”,
as an exciting alternative to the guest speaker presentations in prior years.
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