$23,000,000 Land Loan

$23,000,000 Land Loan (100% of Cost, 56% LTV) for a 5,160 Acre Land Assemblage in Southern California Coastal Paine: Use of Proceeds: Our client is a Scottsdale, AZ based developer of ultra exclusive, high amenity golf communities nationally. They were brought to joint venture a spectacular land assemblage. The operating concept for the property is to develop it into a very low density exclusive community with over 4,000 acres of private preserve. The amenities will include a Tom Weiskopf golf course, 19,000 s.f. club house and spa and a world-class equestrian facility. The "of right" entitlements allow for 39 ranches on the property. GSP/R was able to underwrite using the current of right density as the fall back to get the loan dollars needed. This financing facility (1) Pays off the existing $4.5 million of recourse debt - now due; (2) Returns $4.4 million of costs to the borrower that has been spent on the site to-date; and (3) Funds all remaining entitlement costs necessary to obtain 'paper-entitled lot' status. In addition, there is a commitment to fund 100% of the purchase of an additional parcel that will further add significant value to the package. Structure: The borrower will process entitlements for 2 possible scenarios simultaneously: for thirty-nine 160 acre "ranchettes" and another for four-hundred 10 acre luxury home sites. Challenges: (1) The 400 lot scenario projects lot inventory selling for between $1.2M and $3.0M to individual buyers. (2) The borrower had previously been unsuccessful in its effort to obtain entitlement for 2,100 small lots in 2002. GSP/Rifkind structured the dual-track entitlement requirement envisioning the "ranchettes" as a downside scenario, since the density approval needed for the ranchettes is an "entitlement of right." (3) The site had been sold to the borrower by an oil company that had retained the adjacent parcels, and there were potential environmental issues with respect to migration of oil related contaminants from the adjacent site. GSP/Rifkind was able to work with local engineers to calculate the potential risks. Terms: (1) Rate: 12%; (2) Term: 60 months; (3) Amort: Interest Only; (4) Non-recourse; (5) No pre-payment penalty; (6) Non-participating. (David Rifkind, Michael Schwartz) Use GSP/Rifkind's quick-close capability to create value in your transaction. For more info, contact David Rifkind (ext. 130, drifkind@gspartners.com)

$13,500,000 (80% LTV) Fixed Rate Financing for Acquisition of Grocer Anchored Shopping Center in California Central Valley: Subject property is a 127,547 square foot retail center in the Central Valley of California. The property has 30 tenants and is 100% occupied. The grocer anchor is a regional brand, without an investment grade credit rating, and this location has had uneven sales over the past few years. The second largest tenant is a national "dollar" retailer that is operating on a sublease of an in-line space from a national drugstore. Challenges to the transaction included: (a) a sublease accounting for over 10% of the income at the property that was below the lease rate of the master lease; and (b) a significant amount of CAM reimbursement income for the property was attributable to an adjoining building (not part of collateral) that was formerly occupied by Kmart but was vacant at close and in arrears regarding its CAM obligations. Financing: (1) Pricing: 10-Year T + 1.20%; (2) Term/Amort: 10/30, with 2 years I/O; (3) LTV: 80%; (4) DCR: 1.20; (5) Prepayment: Defeasance; (6) Non-Recourse; (7) Lender Fee: Par. (Gary Mozer, Lee Norman, Larry Wilemon)