TRANSACTION OF THE WEEK (SPECIAL MENTION)

$5,350,000 CMBS Application and 30 Day Rate Lock (5.25% Fixed Rate) Executed on the Same Day for Non Student 39 Unit Apartment Building in Westwood/West LA, California; 1st Year Interest Only: This will be the 4th loan with same borrower and lender in the past 60 days. The other 3 properties are within blocks of this property with similar amenities. This gave both lender and borrower a strong comfort level to lock the rate for a 30 day close on the same day the application was signed. The borrower developed all 4 properties in the 1980’s. Features include 4 story building; penthouses on the 4th floor; pool on roof; spa; courtyard; laundry rooms on each floor; wood entries; Berber carpeting; central air and heating; fireplaces and refrigerators in some units. The owner has kept the property in above average condition. Objective: The borrower's financing objective was to (1) lock rate at the earliest opportunity without any added cost or yield, (2) pay off the existing debt and obtain ‘significant’ cash out and (3) lower the annual mortgage payment from existing floating rate to a lower fixed rate, but to keep the new debt payment at the same dollar level that currently is being paid on the existing loan. Terms: (1) Rate: 5.25% fixed rate with the first year “interest only”; (2) Term/Amort: 10/30; (3) LTV: 68%; (4) DCR: 1.45; (5) Non-recourse; (6) Stress Test: Minimum 0.99 DCR using a 9.66 stress loan constant to achieve the final note rate; (7) Lender Fee: Par. (Gene Brunkhardt)

$11,250,000 (5.25% fixed) for 121,000 s.f. Unanchored Community Retail Center (with some office space) in Central L.A.: Our borrower purchased this sprawling 8 acre property in 1986. He has continually upgraded and rehabbed the property since ownership including: (1) Adding a restaurant pad; (2) Renovated old theater to 22,000 s.f. of office space for municipal government tenant; (3) Resurfaced parking lot, new painting, new stucco, new roof, etc. He is adding a patio food court with new loan proceeds. The property now consists of 7 separate buildings, 39 tenants, 121,000 rentable s.f. Occupancy: 89%. Tenant roster is that of a definitive "community center": 10,000 s.f. clothing store, beauty supply, 2 banks, video store, doctors, dialysis center, restaurants, laundromat, cleaners, etc. Total office space: 20,000 s.f. George Smith Partners arranged cash-out financing. Challenges to Financing: Tenant mix, short term leases, "hockey stick" income history (recent income spike due to new leasing). GSP got lender comfortable by providing market rental comps justifying the new income. Terms: (1) Rate: 5.25%; (2) Term/Amort: 5/25; (3) LTV: 75%; (4) DCR: 1.68; (5) Non-recourse; (6) Lender Fee: Par. (Henry Bryan, Mike Gottlieb)

TRANSACTION OF THE WEEK (SPECIAL MENTION) goes to Sid Wallace for Closing 3 Apartment Loans from the Hospital: Sid was briefly hospitalized last week for a fever (don't worry, he is chipper and back at work as of this writing!). However, Sid reviewed documents he had delivered to his hospital room, worked the phones and closed the transaction, Sid truly is the ageless wonder. Look for a full write-up in next week's FinFax.

$6,000,000 Land Refinance in Santa Barbara County, Closed in 2 Weeks! GSP has arranged a 20% LTV, private placement loan for this 52 acres of ocean view property. The 9 lots are zoned for estate homes. Lender did not require any 3rd party reports. Terms: (1) Rate: 9.00%; (2) Term/Amort: 1 year, interest only; (3) Recourse; (4) Lender Fee: 1.0%; (5) Prepayment penalty for first 3 months. (Henry Bryan, George Smith)

George Smith will kick off the 2003 Real Estate Lecture Series sponsored by the Los Angeles Chapter of Lambda Alpha International, in collaboration with the Center for Real Estate at California State University, Northridge.
When: March 11th, 7-9pm
Where: Cal State Northridge Auditorium
Sponsored by: Lambda Alpha International (LA Chapter) and Cal State Northridge
Cost: Free
For more information, contact Mr. Ghaffari at fghaffari@earthlink.net or go to www.lailosangeles.org