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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
5.00% |
| CODI* |
1.277% |
| 3 Mo. T’s (YTM) |
2.23%
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| 6 Mo. T’s (YTM) |
2.41% |
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| 5 Yr. U.S. T’s |
3.52% |
| 10 Yr. US T’s |
4.15% |
| 30 Yr. US T’s |
4.80% |
| 12-MAT |
1.773% |
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| LIBOR - 1 mo. |
2.37% |
| LIBOR - 3 mo. |
2.46% |
| LIBOR - 6 mo. |
2.65% |
| LIBOR - 1 yr. |
2.95% |
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| Tier 2+ (80% LTV) |
5.36% |
| Tier 3+ (65% LTV) |
5.22% |
| Tier 4+ (55% LTV) |
5.08% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK
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$79,500,000 (80% LTV) Fixed Rate Financing for Regional Destination Center: Collateral consisted of 500,000 s.f. of newly constructed retail space, part of a larger regional destination center in Southern California. GSP was engaged to obtain take-out financing for the existing construction loan. Issues that were overcome in the transaction included a lack of sales history for the tenants and significant structuring for the forward component of the transaction. 74% of the tenants were open for business at application, another 13% of the space was leased, and 13% of the space was vacant. Financing: (1) Pricing: 10-Year T + 1.10%; (2) Term/Amort: 10/30, 3 years I/O; (3) LTV: 80%; (4) DCR: 1.20; (5) Prepayment: Yield Maintenance; (6) Non-Recourse; (7) Lender Fee: Par. (Gary Mozer, Lee Norman, Larry Wilemon, Steve Orchard)
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| $20,000,000 Land Loan for LochenHeath Golf Club in Traverse City, Michigan: LochenHeath is a 644 acre land assemblage entitled for 403 residential units, a golf clubhouse and a community recreation center located along the southern edge of Lake Michigan. The area, known as Traverse City, is a highly desirable resort and second home location. The assemblage is a joint venture between our client and the existing owner of the adjacent 18-hole championship Steve Smyers golf course and 84 residential lots. The loan provides acquisition financing for the remainder of the assemblage as well as infrastructure costs. LochenHeath will be designed as an exclusive, private gated community: Amenities will include a private golf club, fitness center and a marina with boat slips. Home sites will range from attached condominiums to lakeside cottages, custom lots and estate lots. Lake views will be protected through site planning and the positioning of building pads to maximize the views and also to maintain privacy. Challenges: The site is subject to a permanent open space restriction imposed by the Indian tribe selling the land. While the borrower was assured by the Tribe that his development conforms to the open space requirement, the lender did not want to take the risk that the project could be viewed as “in violation”. Solution: (1) A document signed by the Tribe indicating that the proposed developments would not violate the open space restrictions and (2) Signoff from the title company. Terms: (1) Pricing: 12%, Interest Only; (2) Lender fee: 8%; (3) Term: 5 years; (4) Prepayment: None; (5) Releases: Not to exceed 130%. (Michael Schwartz, David Rifkind) |
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| $4,700,000 Refinance of a 105,000 s.f. Self Storage Facility in Sacramento, CA: GSP has arranged permanent financing for this 105,000 s.f., 4-story, enclosed self storage facility. Background: Our client had purchased an existing 75,000 s.f. (app 811 unit) self storage property in 1988 with two stories underground and two stories aboveground. In 2003, he purchased an adjacent lot with the intention of expanding the existing facility. The expansion was completed in mid-2004 and the leasing is underway. Financing: Borrower wanted to take advantage of low interest rates, even though the entire property is not yet stabilized. GSP arranged an innovative structure: $4,700,000 fixed rate loan based upon the original 75,000 s.f. facility, which is stabilized at 95% occupancy. Borrower has the option of funding an additional $1,800,000 up to 270 days after closing the loan. The additional funds will be priced at then prevailing rate, the loans will be blended and co-terminus. Terms: (1) Pricing: 10 year T + 1.40%; (2) Term/Amort: 10/30; (3) LTV: 75%; (4) DCR: 1.20; (5) Non-Recourse. (George Smith, Joel Simaie) |
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HOT MONEY!
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| 15 Business Days Left in 2004! – Do You Need to Close by December 31st? GSP/Rifkind has $50MM Allocated for Must-Close Year-End Deals: Coming off a record year, our private placement debt group has funded loans in nine states with the smallest at $1,200,000 and the largest $56,000,000. Assets have included entitled land, the Miller-Olympia Brewery complex in Olympia, WA, two high-end golf resort communities and many other “story” deals. Our borrowers have bought out partners, restructured partnerships, taken advantage of discounted payoffs with existing lenders and purchased assets at large discounts using our innovative structures and fast, assured closing record. Please contacta David Rifkind (drifkind@gspartners.com, ext. 130) to discuss projects you think might benefit from our capabilities. |
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