$3,150,000 Joint Venture Equity Placement - FINfacts

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	6.00%
CODI*	1.693%
3 Mo. T’s (YTM)	2.95%
6 Mo. T’s (YTM)	3.12%

5 Yr. U.S. T’s	3.70%
10 Yr. US T’s	4.07%
30 Yr. US T’s	4.43%
12-MAT	2.347%

LIBOR - 1 mo.	3.11%
LIBOR - 3 mo.	3.33%
LIBOR - 6 mo.	3.53%
LIBOR - 1 yr.	3.78%

Tier 2+ (80% LTV)	5.28%
Tier 3+ (65% LTV)	5.14%
Tier 4+ (55% LTV)	5.00%
10 yr. term/30 yr. amort.

TRANSACTION OF THE WEEK

$3,150,000 Joint Venture Equity Placement Funded in 12 Days: Timeline: GSP was engaged on April 28th to help a client locate a joint venture equity partner for the acquisition of a 5 acre underperforming retail center in Livermore, CA. The debt was already in place from the City of Livermore. Business Plan: Entitle the land for mixed use (300 units of residential condos and retail). Our client had entered into a 45-day purchase contract on the property in early April. They were working directly with an institutional equity fund whose credit committee turned the deal down 30 days into the 45-day purchase contract. Our client had worked on tying up the deal for over 18 months and did not want to lose it as the seller would not grant any extension options. Day 4- GSP received strong interest from two equity sources. Day 7- GSP presented term sheets to our client and discussed the deal points. Day 8- GSP and the client met with the two potential equity sources at the project site. Day 9- Our client decided on one of the sources and executed the letter of interest. Day 10- Entity docs were issued by the equity partner. Day 11- (and through the weekend) Entity docs were negotiated and finalized during a conference call on Sunday night, which were executed later that same evening. Day 12- Money was wired to escrow on Monday morning. Deal closed on Tuesday, May 17th. Equity Terms: Confidential. (Steve Bram, Shlomi Ronen)

$4,400,000 Refinance for 3-Story, 16,920 s.f, Office Building in Southern California Leased 100% to UCLA: The borrower originally developed this property in 1986. GSP arranged this financing to take out a $2,500,000 loan placed by GSP in 2001. Rollover: The majority of the space expires in 2014, and a smaller portion in 2010. Prior to development, the site was a Texaco gas station and there is a known environmental condition. Lender did not require environmental insurance. Terms: (1) Rate: 5.75% fixed for 5 years, then floating at LIBOR +2.80% in years 6-10 with a 7.50% lifetime cap; (2) Term: 10 years; (3) Amort: 30 years; (4) Non-recourse; (5) Lender Fee: Par; (6) Streamlined Process: $7,000 for all closing costs. (Michael Schwartz; Gilda Rivera)

$14,620,000 Refinance for 70,000 s.f. Single Tenant, Non-Credit Creative Office in Southern California: Full funding on a presently vacant, but leased, building with no escrow reserves. The owner has a signed lease from a mid-sized apparel manufacturer who is relocating their headquarters to the property. Our borrower purchased the property two years ago (vacant) and instituted a full “gut” rehab of the property. Terms: (1) Rate: 6.625%; (2) Loan Term: 10 years; (3) Amort: 30 years; (4) Prepayable at any time without penalty; (5) Recourse until tenant takes occupancy, then Non-Recourse; (6) Lender Fee: 1.0%. (David Stepanchak, George Smith, Allison Higgins)

$5,265,500 Acquisition Financing for 102-Unit, 1920’s Vintage Bricker Apartments near Downtown Los Angeles: The property is 100% occupied with a waiting list. Borrower’s business plan is to implement cosmetic capital improvements and re-tenant a portion of the building at higher rents. Unit Mix: 19 1-bedroom, 72 singles, 11 bachelor (bachelors do not include kitchens). GSP arranged financing with a portfolio lender who funded 80% of the total project cost with 100% of the interest carry and capital upgrades. Timeline: Due to unforeseen delays, we were dangerously close to the required closing date per the purchase/sale agreement. The seller had received unsolicited offers to sell that were substantially higher than our contracted sale price, preventing any opportunity for an escrow extension. The deal went into loan committee at noon, loan docs were completed by 2pm, then executed by the borrower and the wire to fund was authorized by 4pm that afternoon and recorded the following day. Terms: (1) Pricing: LIBOR +3.25%; (2) Term: 5 years; (3) Amort: 3 years I/O, then 30 years; (4) LTC: 80%; (5) Recourse; (6) Lender Fee: 1.0%. (David Stepanchak, Allison Higgins)

BECCA’S CHIC BOUTIQUE READIES FOR GRAND CLOSING SALE!

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.

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