$18,756,016 (95% of all-in cost)

$18,756,016 (95% of all-in cost) Land Acquisition Loan for a "Semi-Entitled" 1,651 Lot, Residential Land Assemblage in Lacey, Washington: This land assemblage is part of a larger, 3,000 lot SFR master planned community. To-date, about 500 lots have been built. The community includes two new 18-hole championship golf courses. The loan proceeds funded 95% of: (1) Land acquisition, (2) Phase 1 development, (3) Interest reserve, and (4) All Closing costs. GSP was able to structure the financing with no pre-sales required by demonstrating the critical shortage of residential lots in the area; partially due to recent growth restrictions imposed by the Washington State Supreme Court. The borrower projects to develop 406 lots in Phase I, ranging from 3,000 to 6,500 s.f. The finished homes are intended for the moderately priced housing market. Terms: (1) Rate: 19%, (2) Pay Rate: 8% (the remainder accrues); (3) Term: 7 years; (4) Amort: Interest only; (5) 18 month interest reserve; (6) Non-recourse; (7) 2 years yield maintenance then open for prepayment with no penalty. (Andy Levant; Michael Schwartz)

Hot Money: GSP has found a unique portfolio lender funding long term (up to 10 years), non recourse loans for unentitled land. Lender also invests in long term joint venture partnerships with land developers.

$4,100,000 Refinance of a 641 Unit Self Storage Facility on Leasehold, Cerritos, CA: GSP arranged this loan to enable our client to purchase the equity interest his partners. The challenge: Leasehold financing with only 27 years remaining on the ground lease with no option. Loan securitization guidelines require a 10 year hangout beyond the amortization; therefore the amortization on this loan is 17 years. The lower amortization significantly increased the mortgage constant, which in turn decreased the cash flow to the borrower. This was a concern, but the property's cash flow was high enough for this structure. Property Specs: Gated facility, 13 single story buildings containing 641 units ranging in size from 50 to 600 s.f, 1970's vintage. All units are accessible from the outside (no hallways or elevators). The buildings are all made of concrete with interior metal studs covered with drywall. Terms: (1) Pricing: 10 year T + 1.40%; (2) Term: 10/17; (3) LTV: 75%; (4) DCR: 1.20; (5) Non Recourse. (George Smith, Joel Simaie)