5 year Fixed Rate Non-Recourse Loans

$71,500,000 (65% LTV) Fixed Rate Financing for Resort Hotel and Convention Center: Subject property is an unflagged 1,000 room resort and convention center in Southern California. GSP was engaged to secure new long-term fixed-rate financing for the owner. GSP placed the existing loan for the owner over 6 years ago (balance at close was approx. $36MM) and as such the defeasance cost was over $6MM. Even with the defeasance costs, GSP achieved a significant cash-out for the client. The loan involved significant structuring, including: (a) no warm-body carve-outs; (b) negotiation of a “springing” cash flow sweep in the event of default instead of a hard lockbox during the loan term; (c) limited covenants regarding ongoing capital investments in the property, despite the age of the facility (over 50 years); (d) approval of insurance from carriers with BBB+ or better credit ratings versus the standard AA minimum; (e) no additional structural reserves, despite a PML rating well in excess of 20 on the primary parking structure; (f) only one independent director for the SPE versus the 2 that are typical on this transaction size; (g) no seasonality reserve; (h) the ability of the operator to remove as many as 85 rooms from service at any time for upgrades or renovations; and (i) the need for lender/servicer approval only for renovations in excess of $2,000,000 at the property. Financing: (1) Pricing: 10-Year T + 1.85%; (2) Term/Amort: 10/25; (3) LTV: 65.00%; (4) DCR: 1.40; (5) Prepayment: Defeasance; (6) Non-Recourse; (7) Lender Fee: Par. (Gary Mozer, Lee Norman, Larry Wilemon)

$3,600,000 Refinance of 16,230 s.f. Rite-Aid anchored Retail Center: This 8-tenant center is in a prime in-fill Los Angeles location with high pedestrian traffic and excellent neighborhood demographics. The property consists of 8 storefront tenants (including Starbucks) on either side of a city owned parking lot. Occupancy: 100%. GSP financed this property 6 years ago at 10 years, fixed rate. That loan was locked out (no prepayment) for 5 years then “5,4,3,2,1” prompting this cash-out refinance at today’s historically low rates. Terms: (1) Pricing: T + 0.98%; (2) Term/Amort: 10/30; (3) LTV: 65%; (4) DCR: 1.40; (5) Non-Recourse; (6) Lender Fee: Par; (7) No SNDA’s required; (8) Closing costs were capped at $15,000 including all 3rd party reports and legal fees.(David Stepanchak, George Smith)