Attention Retail Owners!! National Portfolio Lender - FINfacts

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	4.25%
CODI*	1.038%
3 Mo. T’s (YTM)	1.43%
6 Mo. T’s (YTM)	1.75%

5 Yr. U.S. T’s	3.69%
10 Yr. US T’s	4.47%
30 Yr. US T’s	5.20%
12-MAT	1.381%

LIBOR - 1 mo.	1.50%
LIBOR - 3 mo.	1.70%
LIBOR - 6 mo.	1.98%
LIBOR - 1 yr.	2.43%

Tier 2+ (80% LTV)	6.06%
Tier 3+ (65% LTV)	5.88%
Tier 4+ (55% LTV)	5.68%
10 yr. term/30 yr. amort.

TRANSACTION OF THE WEEK

$29,400,000 Three Property Portfolio Cash Out Refinance, Concurrent Same Day Close with Two Separate Lenders: “Lots of moving parts” doesn’t begin to describe these transactions! GSP arranged three separate loans with two lenders to accommodate our borrower’s needs. The three San Gabriel Valley properties were linked via the existing financing, a single note covering all properties with no release provisions. GSP arranged financing with a CMBS lender (1 loan) and a local bank (2 loans). All three loans funded on the same day.

Property #1 ($19,000,000): Target anchored retail center; 340,000 s.f. (Target: 135,000 s.f.); 87% occupied, approximately 30 tenants, 8 buildings (including restaurant pads) on 28 acres; visible from I-10 with exit ramp leading into property. Target assumed a very below market Montgomery Ward lease. Other tenants include a 42,500 s.f. Bally’s (special use) and a 21,500 s.f. Kids R Us. Moving Parts: (1) On the day the loan application was executed, Kids R Us announced they were going dark in all 136 stores nationwide--they continued paying rent. Due to significant interest from potential sublease tenants, lender accepted a Letter of Credit until a replacement tenant takes occupancy; (2) Factory 2 U (12,000 s.f.) filed corporate bankruptcy during processing. At the time, the bankruptcy plan had not been affirmed by the court and it was undetermined if this location would continue to operate. Lender accepted an LC until the bankruptcy plan confirmation anticipated for later this year. (3) 90,000 s.f. of mezzanine office space within the largest building (Target) is being carved out of the collateral with an “air rights” lot split. Lender will hold the property “on book” for 7 months while the lot split is being recorded. Terms: (1) Rate: 10 year T + 1.45%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.20 on actual; (5) Non recourse; (6) Lender Fee: Par; (7) Carve-outs limited to an entity; (8) Borrower will earn out additional funds based on new leasing with final interest rate to be blended.

Property #2 ($6,400,000): Fee position of lease-hold of 115,000 s.f. grocery/drug anchored retail center in Alhambra. Remaining term of ground lease: 8 ½ years. Per terms of ground lease (signed 70 years ago), raw land is to be returned to our borrower in 8 ½ years. All tenant leases will expire 6 months before expiration and improvements are to be razed. (Terms below)

Property #3 ($4,000,000): 114,000 s.f. retail center in Monterey Park. Property is 67% occupied, in need of substantial rehab, includes vacant “slope floor” movie theater- this was the 2nd Edwards Theater in the world. The financing is structured as a non-recourse rehab/mini-perm, allowing borrower to make improvements and season the property to stabilization. Terms (for #2 and #3): (1) Rate: 6 month LIBOR + 4.50% (Cap: 2% annual, 6% lifetime); (2) Term/Amort: 10/20; (3) LTV: 65%; (4) DCR: 1.30; (5) Lender Fee: Par. (David Stepanchak, George Smith)

$2,100,000 Permanent Financing for Multi-Tenant Industrial Property Totaling 61,800s.f.: GSP arranged $2,100,000 of permanent financing for the acquisition of a Class C, multi-tenant industrial property located in the Inland Empire. Interesting or challenging aspects of the transaction included: (a) a tenant base of “mom and pop” businesses on short-term nature of the leases, with most being 1 year or less; (b) a heavy concentration of automotive businesses at the property, (c) many of the buildings at the property had metal siding and (d) borrower wanted the option of selling a portion of the collateral during the loan term. Financing: (1) Pricing: 6.25%; (2) Term/Amort: 10/25 (fixed for 7 years); (3) LTV: 70.00%; (4) Prepayment: 3-3-2-2-1 par; (5) Recourse; (6) Lender Fee: 0.50%; (7) Reserves: none. (Larry Wilemon, Mike Sullivan)

75% LTV, $1,050,000 Cash-out Refinance at 4.00% Interest (locked at application) for 10-Unit Burbank Apartment Building: GSP arranged this aggressively priced loan as a cash-out for the owner. The first 3 years of the 30-year term are fixed at 4.00%, after which the loan converts to floating rate. The Property: Wood and stucco construction with subterranean parking; minor termite damage and deferred maintenance; loosely operated property with limited operating records. Financing: (1) Pricing: 4.00%, locked at application at no cost; (2) Term/Amort: 30/30; (3) LTV: 75%; (4) Prepayment: no prepayment penalty after 2 years, or upon sale or refinance with same lender; 20% annual prepayment permitted; (5) Recourse; (6) Lender Fee: Par. (Lee T. Norman, Larry Wilemon, Steven Orchard)

HOT MONEY!

Attention Retail Owners!! National Portfolio Lender Will Do 100% of Cost Construction or Bridge Financing: Program Highlights: (1) 100% of all-in cost including fees, interest reserve and developer overhead. Not to exceed 80% of stabilized value; (2) Loan Amounts: $5,000,000-$25,000,000; (3) Rate: Prime + 2.0%; (4) Loan Term: up to 3 years; (5) Interest Only; (6) Recourse; (7) Lender Fee: 2.0% for bridge, 4.0% for construction; (8) Quick close (30 days is possible).