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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
4.50% |
| CODI* |
1.162% |
| 3 Mo. T’s (YTM) |
1.49%
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| 6 Mo. T’s (YTM) |
1.75% |
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| 5 Yr. U.S. T’s |
3.46% |
| 10 Yr. US T’s |
4.28% |
| 30 Yr. US T’s |
5.07% |
| 12-MAT |
1.463% |
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| LIBOR - 1 mo. |
1.62% |
| LIBOR - 3 mo. |
1.75% |
| LIBOR - 6 mo. |
1.95% |
| LIBOR - 1 yr. |
2.27% |
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| Tier 2+ (80% LTV) |
5.50% |
| Tier 3+ (65% LTV) |
5.36% |
| Tier 4+ (55% LTV) |
5.22% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK
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$10,300,000 Acquisition (80% Loan to Cost) for 104,000 s.f., 2 Tenant Big Box Retail in Pacific Northwest: History: A GSP client purchased the property vacant in late 2002. He rehabbed the old single tenant building to accommodate 2 tenants and leased it up during 2003. One of the tenants is a regional tenant, the other is national chain that recently emerged from bankruptcy. After lease up, borrower listed property for sale and simultaneously began the financing process with GSP. The application was executed and subsequently assigned to a new buyer. The buyer was able to rate lock one week after taking over the application. Terms: (1) Rate: T + 1.40%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.25; (5) Lender Fee: Par; (6) Non-recourse; (7) TI/LC Holdback: $400,000. (Gary E. Mozer, Lee Norman, Mark Wintner)
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| $5,100,000 Construction Loan and Mezzanine Financing for 5 To-Be-Built High End Homes: GSP arranged 96% of total cost financing: (1) $4,050,000 (76% of cost) construction loan with a national commercial bank and (2) $1,050,000 (20% of cost) mezzanine piece from a private investor on a total project cost of $5,310,000. Developer is experienced in the region and contributed $210,000 in equity, representing approximately 4% of cost. These are custom high-end homes located in the Central Coast of California with ocean views. Average home size is approximately 4,000 sf on lot sizes of 1.3 to 4.1 acres, with projected sale prices in the $1,250,000 to $1,300,000 range. These five parcels are the premium lots out of over 100 home sites. Terms: Construction Loan: (1) Rate: LIBOR + 2.50%; (2) Loan Term: 18 months with a 6 month option; (3) Amortization: Interest Only, fully funded interest reserve; (4) Recourse: Yes; (5) Lender Fee: 0.75%; (6) LTV/LTC: 70% of sellout value; 76% of total cost. Mezzanine Financing: (1) Rate: 20%; (2) Loan Term/Amort: 18 months with interest accrual; (3) Recourse: Non-recourse with springing guarantee in the event of a default on the construction loan; (4) Lender Fee: 2.0%. (Mike Gottlieb, Henry Bryan) |
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| $2,025,000 Cash-out Refinance for 40-Unit, 1920's Vintage, Mid-Wilshire "Bricker" Apartment Building: Borrower purchased this 4-story building two years ago and has substantially rehabbed it. Unit mix: 12 1-bedroom, 16 singles, 12 bachelors. Borrower's all-in costs (including acquisition and rehab) is under $1,500,000. Property is now 100% occupied with new paint, flooring, landscaping, lobby fixtures, etc. Borrower increased the NOI by 47% and still has not finished rolling all tenants. Terms: (1) Rate: T + 1.30%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.25; (5) Lender Fee: Par; (6) Non-recourse. (Gary E. Mozer, Lee Norman, Mark Wintner, Steve Orchard) |
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