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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
4.50% |
| CODI* |
1.162% |
| 3 Mo. T’s (YTM) |
1.55%
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| 6 Mo. T’s (YTM) |
1.78% |
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| 5 Yr. U.S. T’s |
3.42% |
| 10 Yr. US T’s |
4.22% |
| 30 Yr. US T’s |
5.02% |
| 12-MAT |
1.463% |
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| LIBOR - 1 mo. |
1.65% |
| LIBOR - 3 mo. |
1.79% |
| LIBOR - 6 mo. |
1.99% |
| LIBOR - 1 yr. |
2.30% |
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| Tier 2+ (80% LTV) |
5.43% |
| Tier 3+ (65% LTV) |
5.29% |
| Tier 4+ (55% LTV) |
5.15% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK
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$39,000,000 Refinance for 2,293,300 s.f. Industrial Complex on Leasehold in Sacramento, California: GSP’s Alaska office arranged non-recourse, LIBOR based financing for this 38 building, 69% occupied complex. This is classic floating rate, “on book” financing from a major bank. Initial funding is $31,800,000; lender will fund up to $39,000,000 at borrower’s discretion (like a revolving credit line). The property is the former Sacramento U.S. Army Depot converted to private use in 1996 when Packard Bell purchased the buildings and leased the ground from the City of Sacramento. After Packard Bell was acquired by NEC and the facility was closed, the buildings were sold to our borrower and the ground lease was assigned to him. He converted the park into a secure, multi-tenant industrial property. Terms: (1) Rate: 30 day LIBOR + 1.65%; (2) Term: 3 years with option to extend for 2 years; (3) Amort: Interest Only; (4) LTV: 70%; (5) Lender Fee: 0.5%; (6) Non-recourse. (J. Jay Brooks)
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| $15,500,000 Condo Conversion Refinances for 2 Apartment Buildings: GSP arranged two loans as cash out refinances on the existing apartment buildings. Both properties are over 90% occupied. The excess proceeds are sufficient to fund all of the conversion costs. Our borrower is able to convert to condos “on his own” without the detailed diligence required in a standard construction loan. Property Specs: Building 1: 240 units in Southwest US; garden apartment complex; purchased 10 years ago; $10,500,000 loan amount representing 65% of sellout value. Building 2: 41 units in Pacific Northwest; garden apartment complex purchased 6 years ago; $5,000,000 loan amount representing 65% of sellout value. Terms: (1) Rate: LIBOR + 2.50% no floor; (2) Loan Term: 24 months; (3) Amort: Interest Only; (4) Release Provision: 80% of net sales proceeds; (5) Recourse: Full repayment guarantee; (6) No prepayment penalty. (7) Lender Fee: 1.0%. (Mike Gottlieb) |
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| $6,330,000 Construction Loan on Retail/Office Center in Bakersfield, CA: GSP has arranged financing for the new construction of a four building retail and office center to be built in two phases. The borrower is building on the largest undeveloped parcel in the CBD of Bakersfield, sandwiched between two major north/south surface streets at the foot of Highway 178. The first phase is three buildings totaling 16,300 s.f. of retail. The second phase will be a fourth building of 26,000 s.f. ground floor retail and second floor office space. The center is 70% pre-leased with national and regional tenants with another 25% under negotiation. Lender gave credit to value created through the entitlement process. Terms: (1) Rate: Prime + 1.50%; (2) Term/Amort: 12-month Interest Only with two, 6-month extensions; (3) Loan-to-Stabilized Value: 55.5%; (4) Loan-to-Cost: 68.8%; (5) Recourse. (David Stepanchak, Steve Hamermesh) |
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| $4,900,000 Permanent Financing for Multi-Tenant Retail Property Totaling 68,314 s.f.: GSP arranged $4,900,000 of permanent financing for the acquisition of a multi-tenant, unanchored retail property located in West Palm Beach, FL. Interesting or challenging aspects of the transaction included: (a) the largest tenant is on a sublease from a primary tenant in Chapter 11, with the potential right to reject the lease, and no estoppel or SNDA was provided; (b) the second largest tenant has a lease expiring in four months and has not indicated whether it intends to renew; and (c) the survey reflected a parking total that was below the minimum requirement in the municipality. Financing: (1) Pricing: T + 1.40% (30/360); (2) Term/Amort: 10/25; (3) LTV: 70.00%; (4) Prepayment: Yield maintenance; (5) Non-recourse; (6) Lender Fee: 0.50%; (7) Reserves: none. (Larry Wilemon) |
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HOT MONEY!
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| Portfolio Lender Funding California Loans, Highly Competitive Rates, Easy Docs and Process, NO Prepayment Penalty! Fixed or Floating Rate financing (3-10 years) with $450 legal fee, streamlined docs, minimal reports (Appraisal and Phase 1 only, no engineering or PML required). Lender is looking for the “4 basic” product types but will consider special purpose. Lender services all loans locally for entire term. Program Highlights: (1) Loan Size: $1,000,000-$10,000,000; (2) Fixed Rates for Multifamily: 3 years-5.00%, 5 years-5.50%, 7 years-5.875%, 10 years- 6.375% (Commercial Properties are priced are 0.5% higher); (3) Floating Rates: 6 month LIBOR + 2.25-2.75% with floors in the 4.50% range-rate adjustments capped at 2% annually, 5% for life of loan; (4) Max LTV: 75% commercial, 80% multifamily; (5) Min DCR: 1.25 commercial, 1.20 multifamily; (6) Amort: up to 30 years; (7) Recourse depends on leverage, lender has been aggressive in funding non-recourse loan at close to max leverage. |
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