Nationwide Lender Funding Fixed Rate Loans

$15,800,000 (83% LTC / Prime + ½ % / Recourse) Construction Loan for the Development of 19-Unit Condominium Project Located on Wilshire Corridor: Los Angeles, CA. Borrower had extended an option to purchase this property for over 4 years, during which he entitled the property for a 5-story luxury condominium project. Lender provided almost 90% of the purchase price for the land while recognizing $2,400,000 of implied equity generated by the entitlement and approved permits. Borrower plans to lease these units as rentals for at least 10 years but always has the option to sell as condos. Borrower was required to verify nearly $900,000 expended during the entitlement process. Loan will cover all hard costs, but borrower will be required to cover approximately 75% of soft costs. Terms: (1) Pricing: Prime + ½ %; (2) Term/Amort: 24 months/IO (one 6-month extension); (3) LTV: Loan to Aggregate Retail Value not to exceed 70%; (4) LTC: 83%; (5) Recourse; (6) Lender Fee: ½ % (George Smith, Jim Smith)

$5,000,000 Refinance of an Industrial/Office Space Near Culver City: GSP arranged a minimal cash-out, refinance of an approximately 100,000 sq ft, creative office space in order to lower the borrower’s previous rate and debt service while maintaining prepayment flexibility. Since this was a 35% loan to value, GSP looked to local portfolio lenders who would allow for flexibility in prepayment as well as overall structure. Although the borrower was interested in locking in today’s historically low rates, we funded a floating rate loan with a lifetime cap of 7.5% which is the same rate as his floor for the floating-rate loan he refinanced. This floating rate loan enabled him to get an initial rate of 5.065%, which is about 100-150 basis points lower than a 10-year fixed-rate loan with similar prepayment. Terms: (1) Pricing: 12 MTA + 2.25%, adjusts every six months with a 7.5% lifetime cap; (2) Term/Amort: 10/30; (3) LTV: 35%; (4) DCR: 2.00; (5) Non-Recourse; (6) Lender Fee: Par; (7) Pre-payment: 1%, 1%, 1%, open. (George Smith, David Stepanchak, Allison Higgins)