Construction Expands Again, 14th Straight Record Month

$28,000,000 Permanent Loan Fixed at 5.25% on a 57,295 s.f. Medical Office Building in West Los Angeles: GSP has arranged a substantial cash out financing for this late 80’s vintage, 3-story medical office building. Occupancy: The asset is ideally located directly across the street from one of the largest general hospitals in Los Angeles County, and is 75% occupied by a single AAA rated tenant. Loan proceeds are approximately $488 per rentable s.f. on a property appraised at approximately $615 per rentable s.f. 25% of the property’s income stems from parking revenue. Terms: (1) Rate: 10-year T +0.95%; (2) Term: 10 years; (3) Amortization: 5 years interest only, then 30 year amort; (4) LTV: 79.55%; (5) DCR: 1.20%; (5) Non recourse; (6) Lender Fee: Par; (7) Reserves: $0.22 per s.f. annually for capital expenditures, no TI/LC reserves but springing at specified minimum occupancy/tenancy standards. (Steven C. Orchard)

Michael Schwartz spoke recently at the following events: (1) An equity conference regarding distribution provisions of JV agreements; (2) A “Tailored Structures’ panel at the MBA convention; (3) Moriah Society breakfast (featured speaker).

According to the Associated General Contractors of America's (AGC's) Chief Economist Ken Simonson, the value of construction put in place hit a seasonally adjusted annual rate of $1.05 trillion. Commercial Construction: "Manufacturing construction soared 31% and communication leaped 26%, after years of falling activity. Lodging jumped 16% thanks to higher occupancy and room rates at hotels and higher attendance at business meetings and conventions. The broad commercial category climbed 9%, led by a 19% rise in multi-retail construction such as 'big-box" stores and shopping centers. Warehouse construction, which had lagged for years, rose 11%, reflecting a recent rise in inventories. For a change, multi-family construction edged out single-family, 16% to 14%." However, Mr. Simonson expressed concern about costs- “My biggest concern is prices for construction materials, which are running 8% ahead of last year's level.” He also pointed out that freight costs are also rising due to gas prices.

GSP Profiles - James Smith: (Part of our continuing series profiling GSP's "Next Generation" of Brokers) Mr. Smith joined GSP full-time in March 2004 as the Assistant to the Chairman. He has already worked on placing and closing over $20,000,000 of financings at GSP. Mr. Smith is a graduate of Loyola Law School and was admitted to the California Bar in May 2004. Jim works directly with George Smith on a wide variety of transactions. He can be reached at ext. 128 or jsmith@gspartners.com.

After five years Becca’s Chic Boutique, a designer resale clothing boutique in Tarzana, is going out of business. The store was opened to raise money for the A-T Medical Research Foundation and as a place where Becca Smith, who is afflicted with Ataxia Telangiectasia, could work, be productive and run her own business. The strip of stores where Becca’s is located is giving way to a new Von’s.

Becca’s Chic Boutique is holding its Grand Closing Event now through June 25th. This is your last chance to donate men’s and women’s clothing and accessories. “It is also a last-chance for shoppers to take advantage of amazing bargains,” according to Pam Smith, wife of George Smith and mother of Becca Smith.

“We sold an $1,800 Carolina Herrera dress for $99 and an evening suit by Galliano, which was originally $2,500, for just $325,” Pam Smith explains.

The store must close on June 26th, but in the time between, Becca hopes to raise thousands of additional dollars for the research by going out in style.

Donors and shoppers can visit Monday through Saturday 10am-6pm at Becca’s Chic Boutique in the Corbin Village Shopping Center, 19822 Ventura Boulevard in Woodland Hills, or call (818) 703-0151.