GSP/RIFKIND UPDATE

$17,200,000 (93% of total capitalization) Combined Senior and Mezzanine Financing for Value-Added Retail/Office Building in Southeast U.S.: GSP financed this value-added acquisition of a 115,000 s.f. mixed-use project with a floating rate first mortgage of $14,200,000 and a $3,000,000 mezzanine piece secured by partnership interest. Both lenders were institutions that worked together to sign a mutually agreeable inter-creditor agreement. The property consists of approximately 60% office with some vacancy and many below-market rents. The upside is bringing the rents up to market as the leases expire over the next three years. The 40% retail consists of destination restaurants and retail that serve as amenities for the project. Rather than assume a much lower amount of existing CMBS financing, the buyer elected to pay a defeasance fee of approximately $1,300,000, which actually lowered the overall cost of capital by substantially reducing the initial equity requirement. Rehab and releasing reserves were minimal. Senior Terms: (1) Loan Amount: $14,200,000; (2) Interest Rate: 1 month LIBOR + 3.75%, 6.75% floor; (3) Amort: Interest Only; (4) Loan Term: 36 months; (5) LTV: 80%; (6) Prepayment: allowed during the last 18 months without penalty; (7) Lender Fee: 2.25 % payable as an exit fee, not upfront; (8) Recourse: Non Recourse. Mezzanine Terms: (1) Loan Amount: $3,000,000; (2) Interest Rate: 18% with a 7% current pay rate; (3) Loan Term: 36 months; (4) LTV: 93%; (5) Prepayment: Allowed during the last 18 months without penalty; (6) Lender Fee: 1%; (7) Recourse: Non-Recourse. (Mike Gottlieb and Henry Bryan)

$7,550,000 Very Quick Close Bridge Financing for 172 Unit Condo Conversion in Downtown Kansas City: Adding momentum to the rebirth of Kansas City’s Downtown District, GSP/Rifkind has funded a $7,550,000 bridge loan to transform an old apartment building into a high-rise condominium. “Demand for premium high-rise condo living is accelerating as Downtown Kansas City is being revived,” said David Rifkind, “Downtown Kansas City is undergoing an exciting urban transformation and the View Condominiums will be part of the bigger plan to reveal the beauty of the city. We were able to complete the financing in less than 10 days from when we first toured the property. This speed was necessary to allow the developer to take advantage of the huge pre-sale demand for this project.” The developer had already made considerable progress in the rehabilitation when GSP/Rifkind started processing. “The loan is particularly efficient because we structured it so that interest and fees are only being charged on the money as it is drawn. This reduces the absolute cost of borrowing and allows the developer flexibility to use cheaper money from sales or other sources,” noted Rifkind. GSP/Rifkind bested other lenders because it accepted the work in-progress and did not require supplemental reports. All non-legal due diligence was done internally within 48 hours.

The View Condominiums, at 600 Admiral Boulevard, will serve as the anchor for the revitalization of the downtown neighborhood. All 172 units will have views from the north, south, east and west. IT is located near the Federal Courthouse at the Civic Mall, Columbus Park, the City Market and the Kansas City Riverfront and set on 1.45-acres of land lined with maple trees (the original property was a 19-story apartment building built in 1967). Amenities include: balconies with each unit, indoor and outdoor pools, hot tub, tennis court, fitness center, 24-hour security, 20-seat movie theatre, doorman/concierge service. Finished condo prices will range from $130,000 to $395,000. Unit Sizes: 600-1,500 s.f. The 20th floor will have two Penthouse units. Buyers will benefit from the full 100% 25-year property tax abatement obtained by the developer. Terms: (1) Loan Term: 5 years; (2) Amort: Interest Only; (3) Non-recourse. (Use GSP/Rifkind’s quick-close capability to create value in your transaction. For more info, contact David Rifkind (ext. 130, drifkind@gspartners.com)