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| KEY RATE INDICES |
FANNIE MAE RATES * |
| Prime Rate |
6.75% |
| CODI* |
1.693% |
| 3 Mo. T’s (YTM) |
3.61%
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| 6 Mo. T’s (YTM) |
4.01% |
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| 5 Yr. U.S. T’s |
4.23% |
| 10 Yr. US T’s |
4.37% |
| 30 Yr. US T’s |
4.60% |
| 12-MAT |
3.163% |
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| LIBOR - 1 mo. |
3.89% |
| LIBOR - 3 mo. |
4.09% |
| LIBOR - 6 mo. |
4.29% |
| LIBOR - 1 yr. |
4.53% |
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| Tier 2++ (80% LTV) |
5.60% |
| Tier 3++ (65% LTV) |
5.46% |
| Tier 4++ (55% LTV) |
5.32% |
| 10 yr. term/30 yr. amort. |
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TRANSACTION OF THE WEEK
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$38,500,000 (88% Loan to Cost) Urban Infill Condo Construction Loan in Southern California. GSP arranged $38,500,000 of construction financing for an 85 unit luxury condominium project on a 73,036 s.f. lot. The property was a class C industrial building purchased in early 2004. The borrower re-entitled the land for condominiums and created an increase in value. GSP identified a lender that would recognized the imputed equity and provide the financing without any new equity contributed by the borrower. Terms: (1) Starting Rate: 7.17%; (2) Pricing: 6 Mo. Libor + 3.10; (3) Term/Amort: 3 years with 6 month extension, interest only; (4) LTC: 88%; (5) Non Recourse with completion guarantee: (6) Lender Fee: 1 point. (Henry Bryan)
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$3,900,000 Cash Out Refinance for a Single Story Creative Office Building in Culver City, CA: Originally designed as a single tenant industrial building, the property was acquired vacant by the borrower in 2000. The borrower/current owner subsequently configured the property to “creative office” use and is 100% leased to two tenants. The excess proceeds will be held by the borrower in an interest bearing account and to be used strictly for TI's, LC's, capital expenditures and other operating deficits, thus impounds and reserves were waived by the lender. Terms: (1) Fixed Rate: 10 yr. CMT + 2.38%; (2) Loan Term: 10 years; (3) Amortization: 30 years; (4) LTV: 59%; (5) Non-recourse; (6) No prepayment penalty; (7) No impounds and no reserves; (8) DCR: 2.07; (9) Lender Fee: Par; (10) Rate Lock at application signing: Locked at 6.36%, 60 days free. (Andrew Levant, Gilda Rivera).
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| $3,560,000 Construction Loan (85.6% Loan to Cost) for 6-unit Condominium Project in West Los Angeles: Borrower purchased three properties simultaneously from same seller. This property was a vacant 10-unit apartment building adjacent to Beverly Hills and Beverlywood areas. The building was under REAP (Rent Escrow Account Program) status due to failure to correct various zoning and safety violations. After zoning became comfortable with borrower’s plan to demolish existing structure and to build six luxury condos, the REAP status was removed. Lender offered 63% financing for acquisition but nearly 100% financing for soft and hard construction costs. Terms: (1) Rate/Pricing: Prime + 0.5%; (2) Term/Amort: 24 Months w/ one 6-month extension/interest only; (3) Recourse and Completion Guarantee; (4) Lender Fee: 0.5%; LTC: 85.6%. (George Smith, Jim Smith) |
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| $3,000,000 Cash Out Refinance for a Multi-Tenant Office Building in West Los Angeles, CA: This financing was for a 26,767 s.f. three-story (with mezzanine), suburban office building in West Los Angeles. The property is 90% occupied and the penthouse is currently occupied as executive suites, leased to approximately 25 tenants on a month-to-month basis. Ownership indicated that the space was previously leased to an executive master tenant that subleased the units individually. The excess proceeds will be held by the borrower in an interest bearing account to be used strictly for TI’s, LC’s, capital expenses and other operating deficits. Terms: (1) Fixed Rate: 10 yr. CMT + 2.38%; (2) Loan Term: 10 years; (3) Amortization: 30 years; (4) LTV: 53%; (5) Non-recourse; (6) No prepayment penalty; (7) No impounds and no reserves; (8) DCR: 1.77; (9) Lender Fee: Par; (10) Rate Lock at application signing: Locked at 6.36%, 60 days free. (Andrew Levant, Gilda Rivera). |
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PRESS BOX
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| Lee T. Norman, Senior Vice President of George Smith Partners, Inc., appears in the attached Commercial Property News “Stars to Watch” article. Click here to read. (If you are unable to see the article, please contact Dinah Hall at (310) 557-8336 ext. 129) |
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A Heart-Felt Thanks...
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George Smith Partners would like to thank all those who attended the 11th Annual A-T Real Estate Luncheon on September 21, 2005. It was great to see many friends, old and new. We were touched to see George Smith presented an honorary doctorate from Tel Aviv University for his work supporting A-T medical research. Keynote speaker Bruce Karatz, Chairman and CEO of KB Home, assured us that the California housing “bubble” isn’t so much a bubble as a boom. All in all, the event was a great success. Thanks, and we’ll see you next year.
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