|
|
| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
6.50% |
| CODI* |
1.693% |
| 3 Mo. T’s (YTM) |
3.51%
|
| 6 Mo. T’s (YTM) |
3.80% |
|
| 5 Yr. U.S. T’s |
4.08% |
| 10 Yr. US T’s |
4.21% |
| 30 Yr. US T’s |
4.41% |
| 12-MAT |
2.865% |
|
| LIBOR - 1 mo. |
3.62% |
| LIBOR - 3 mo. |
3.82% |
| LIBOR - 6 mo. |
4.04% |
| LIBOR - 1 yr. |
4.26% |
|
|
| Tier 2+ (80% LTV) |
5.45% |
| Tier 3+ (65% LTV) |
5.31% |
| Tier 4+ (55% LTV) |
5.17% |
| 10 yr. term/30 yr. amort. |
|
|
|
|
|
TRANSACTION OF THE WEEK
|
|
$52,000,000 (10-Year CMBS) 30% Cash-Out, Refinance of a Two Office Building Portfolio in and adjacent to Beverly Hills: GSP placed 2 non-crossed loans totaling $35,520,000 and $16,480,000 on the two respective office buildings. Total square feet: 250,000. As these are stabilized, high occupancy (95%), A- assets, we had tremendous interest from 28 lenders. We received cut-rate pricing which included 80% leverage, over 30% cash-out, and no lock-box. Additionally, 95% of the space “rolls” during the loan term--no holdbacks or TI/LC’s reserves are being required by the lender. The lender is comfortable with the advanced notice requirement from the two largest tenants. The posting of a Letter of Credit will be required if either of those two tenants give notice to vacate within the next 5 years. Terms: (1) Pricing: T + 0.95%; (2) Term/Amort: 10/30; (3) LTV: 80%; (4) DCR: 1.20; (5) Non-Recourse; (6) Lender Fee: Par; (7) Pre-payment: Defeasance; (8) 80% of SNDA’s req’d. (George A. Smith, David Stepanchak, Allison Higgins)
|
|
| $8,100,000 Land Loan at 100% Loan to All in Costs on Urban Infill Property in Southern California. The borrower put this land into option two years ago. The purpose of this loan is to cover land acquisition, pre development costs and reimbursements. The lender recognized imputed equity from progress on entitlements prior to them being completed. They got comfortable with the process from the municipality and funded 100% of the purchase contract plus reimbursements and pre development costs. The property, an urban infill transit oriented project, less than a 3 block walk to a central transit center, is one month away from condo/mixed commercial use entitlements. Terms: (1) Rate: 14% (2) Term: 1 year loan, 1 six month extension; (3) Amort: Interest only; (4) LTC: 100%; (5) LTV: 60%; (6) Lender Fee: 5.0%; (7) Recourse. (Henry Bryan, Mike Gottlieb, Chad Coluccio) |
|
| $5,300,000 Cash Out Refinance (T + 0.95%) for A 76 Unit Apartment Complex in Encino, CA. Built in 1968, the borrower purchased the property for $3,245,000 in 1998 with a TIC ownership structure. The borrower desired to lock the mortgage interest rate at application signing. GSP orchestrated the defeasance of the existing debt, which was performed by Neuman and Associates. Customized Terms: (1) Interest Rate: 10 yr. T plus 0.95%; (2) Term: 10 years; (3) Amort: 30 years; (4) Rate lock at application signing: locked at 5.07%, 30 days free; GSP ensured that the loan closed within that timeframe; (5) In lieu of immediate repair reserve for deteriorating, 30 year old shingles, borrower required to replace shingles within first 2 years of loan, (5) Closing costs capped at $20,000; (6) Lender accepted 7 year old survey; (7) Allowance for subordinate debt in the future subject to combined 75% LTV and cumulative 1.20 DCR, (8) No reserves for insurance or capital expenditures. (Michael Schwartz). |
|
HOT MONEY
|
| George Smith Partners is Working with a Western States Lender that Offers Long-Term Fixed-Financing with Flexible Prepayment Penalties, All Major Product Types Considered, Including Single Tenant Program Highlights: (1) Deals sizes: $1,000,000 - $10,000,000 +; (2) Typical Rate: 10 year CMT + 1.60%; (3) Term: 10 years; (4) Amort: 25 years; (5) Recourse; (6) Prepayment: 3, 2, 1, zero after year 3; (7) Lender Fee: .50%; (8) LTV: 75%; (9) LTC: 80%; (10) DCR: 1.25; (11) Processing Fee: $500 plus all out of pocket expenses. |
|
PRESS BOX
|
|
On August 10, 2005, Gary E. Mozer, George Smith Partners, Inc. CEO, was interviewed by Retail Traffic regarding trends in retail financing. We will provide a link to the article when it is published.
|
|
11th Annual GSP Real Estate Luncheon
|
|
To Benefit the A-T Medical Research Foundation
Wed., September 21, 2005
Westin Century Plaza Hotel & Spa
FEATURED GUEST SPEAKERS
Bruce Karatz
KB Homes
Itamar Rabinovich
President of Tel Aviv University
Register at www.gspartners.com
|
|
|
If you have received this e-mail in error, wish to change your e-mail address or want to be removed from our list, click here. |
|
|
|
|
