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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
4.75% |
| CODI* |
1.212% |
| 3 Mo. T’s (YTM) |
1.84%
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| 6 Mo. T’s (YTM) |
2.06% |
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| 5 Yr. U.S. T’s |
3.25% |
| 10 Yr. US T’s |
3.98% |
| 30 Yr. US T’s |
4.75% |
| 12-MAT |
1.595% |
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| LIBOR - 1 mo. |
1.94% |
| LIBOR - 3 mo. |
2.11% |
| LIBOR - 6 mo. |
2.24% |
| LIBOR - 1 yr. |
2.47% |
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| Tier 2+ (80% LTV) |
5.22% |
| Tier 3+ (65% LTV) |
5.08% |
| Tier 4+ (55% LTV) |
4.94% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK
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$14,010,000 Acquisition Financing for 121,300 s.f. Single Tenant R&D Industrial in Goleta, California: This two building, single story complex was built in 1964 for Raytheon (S&P BBB-), the current tenant. The research facility sits on 9.85 acres and is highly improved with “particle free” rooms as well as traditional office and administrative space. Lease: 4.5 years remaining, 14 month notice required for lease termination. Note that there is ultra sensitive equipment used by the tenant that would take one year to recalibrate should the equipment ever be moved. The industrial sub market in Goleta is virtually 100% occupied with significant barriers to entry. Our borrower, an experienced Santa Barbara owner/developer/investor, was in contract for a year while environmental and structural issues were resolved. Borrower obtained environmental insurance mitigating the lenders’ requirement for a “warm body” guarantee on the environmental carve-out. No tenant improvement/leasing commission will be required until 16 months before the potential lease termination. Should the tenant exercise their option to extend (which they must do 2 months after that date), the reserves will be refunded to borrower. Lender also allowed the fraud and waste carve-outs to be signed by a capitalized entity. Borrower took advantage of early rate lock 30 days before closing. Terms: (1) Rate: 10 year T + 1.45%; (2) Term/Amort: 10/30; (3) LTV: 75%; (4) DCR: 1.35; (5) Non-recourse; (6) Lender Fee: Par. (David Stepanchak, George A. Smith)
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| $1,350,000 Acquisition Financing (90% of cost) for Single Tenant Dialysis Center in Oak Cliff, TX: GSP arranged fixed rate, non recourse (15 year term) financing for this 6,000 s.f. freestanding dialysis center in this district near downtown Dallas. Tenant is a nationwide company with a “BB” rating (non-investment grade). The newly constructed building also contains an ATM for a national bank. Terms: (1) Rate: 6.95%; (2) Term/Amort: 15/25; (3) DCR: 1.05; (4) LTV: 90%; (5) Non-recourse; (6) Lender Fee: Par. (David R. Pascale, Jr., Steve Bram) |
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Market Data! Loan Applications Executed This Week at GSP:
(1) 10 year T + 1.03% for Stand-Alone Grocery Store (Credit Tenant) in Major West Coast City: GSP won the business for this $10,000,000 (72% of purchase price) acquisition loan because our lender “priced through the market” dropping their spread 13 bps from their matrix. Remaining lease term is 8 years, the loan app provides for no TI/LC reserve. Several CMBS lenders and life companies were not able to quote as the grocery store does not report sales. Typical CMBS quotes were in the T + 1.20% range with life companies quoting at T + 1.40%. (Michael Schwartz)
(2) 10 year T + 1.00% for Class A Shadow Anchored (Grocery/Drug) Retail Center in Hawaii on Leasehold: Property consists of 64,000 s.f. of in line space (app 30 tenants), 100% occupied, extremely well located in a high demographic residential area. Again, a CMBS lender priced through the market to win the business. (Steve Bram, David R. Pascale, Jr., Noah Hahn)
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HOT MONEY!
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| New For-Sale Residential JV Equity Provider! George Smith Partners is working with a new institutional equity fund looking to invest up to 95% of the required equity in to-be-built single family residential developments including condos and condo conversions located in low and middle income areas. This fund will provide equity from as low as $1,000,000 to $7,000,000 million per project. The units should sell for no more than $500,000. They are very comfortable in inner city, low and very low income areas. This investor is prepared to take entitlement risk and may also provide development expertise to implement the business plan if required. Deal structure: they provide up to 95% of the required equity with a 5% sponsor co-invest. The money receives a 10% preferred return, then profits are split 70%/30% to fund up to a 20% IRR, then split 50/50 thereafter. Other structures are available on a deal-by-deal basis |
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10th ANNUAL GSP REAL ESTATE LUNCHEON
(To Benefit the A-T Medical Research Foundation)
ONLY TWO WEEKS LEFT TO REGISTER!
Wednesday,November 17, 2004
Wed., November 17th
Century Plaza Hotel (Century City) |
FEATURED GUEST SPEAKER
John E. Anderson
President & Sole Shareholder, Topa Equities, Ltd.
ON-LINE REGISTRATION OPEN NOW!!!
1,350+ Attendees Confirmed
www.gspartners.com
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