Relationship-Oriented Lender Providing Funds

$35,000,000 Fixed Rate, Non-Recourse Financing for Mixed Use Complex in South Bay, CA: GSP arranged a $35,000,000 permanent loan on a mixed-use complex in the South Bay. The collateral consists of two properties on separate parcels - a mini storage & incubator industrial building and a separate mini storage building, totaling 230,000 SF. Because of the unique nature of the property and the large amount of cash out, GSP vetted the financing proposal with over 20 CMBS lenders. The loan repaid an existing construction loan on one phase and defeased a CMBS loan on the other. GSP provided consulting advice on the defeasance and negotiated to obtain financing with: (a) significant cash out, (b) no impounds, (c) no TI/LC reserves, (d) no cash management account, and (e) a partial reconveyance provision. Terms: (1) Loan Amount: $35,000,000; (2) Pricing: 1.08% + 10 Yr. T's; (3) LTV: 80%; DCR: 1.20; (5) Loan Term: 10 Years; (6) Amort: 30 years; (7) Non-recourse; (8) Lender Fee: Par. (Gary M. Tenzer, Jim Neuman, Aaron Wright)

$22,750,000 76% LTC Acquisition/Reposition Senior Bridge Financing for a 420-Unit Apartment Complex: GSP arranged $22,750,000 of non-recourse senior bridge financing (76% of total project cost) for the acquisition and reposition of a 420-unit apartment complex in Metro Denver, CO. The Property: 420-units (50% 1-bedroom/1-bath and 50% 2 bedroom/2 bath), 25 two-story buildings (plus clubhouse), 20 acres, built in early-1980's, pool, fitness center, clubhouse center, laundry facilities, and a park-like setting. Unit amenities include: central air & heating, dishwashers & refrigerators, spacious closets, large private balconies and/or patios, vaulted ceilings on top floor units, and wood-burning fireplaces. Issues: Significant interior and exterior renovations needed to bring property to market standards and above market vacancy at the property due to mismanagement and deferred maintenance. The Market/Location: In-fill Denver Metro location within minutes of the Denver Tech area has excellent visibility on major access streets, submarket construction of new product extremely low, and a market that has strong employment characteristics. Sub-market Occupancy: 90%+. Reposition: Borrower will renovate and modernize the project and raise rents to market. Unit rents are $150.00 below market on average. Capital Structure: (1) Purchase Price: $24,300,000; (2) Renovation, Working Capital Reserve, Interest Reserve, Contingency, Closing Costs: Approx. $5,700,000; Total Capitalization: Approx. $30,000,000. Financing - Senior Debt: (1) Loan Amount: $22,750,000 (approx. 76% of total cost); (2) Rate: LIBOR + 2.30%; (3) Term: 3 years plus 2-1year extension options for 0.25% fee each; (4) Interest only for the primary term and extension terms; (5) Non-recourse; (6) Lender Fee: 0.75%; (7) Exit Fee: 0.00%. (8) Prepayment: Year 1 - locked out to prepayment; year 2 and beyond including the extension periods - prepayable at par. (Gary E. Mozer, Lee T. Norman)

$18,540,000 (85% of Total Project Cost) Non-Recourse Senior Construction Financing for a To-Be-Built 159,324 SF Self-Storage Facility: GSP arranged $18,540,000 of non-recourse senior construction financing (85% of total project cost) for the construction of a 159,324 SF self-storage facility in the Sunnyvale, CA area. The Property: To-be-built 159,324 SF on 3.38 acres. Issues: The requirement was to secure maximum leverage non-recourse construction financing. Additionally, the soil and groundwater beneath the site have existing environmental conditions as a result of on-site activities by the original owner. The Market/Location: Growth location on freeway access road in an area that has approx. 900,000 SF of self-storage facilities. The Financing - Senior Debt: (1) Loan Amount: $18,540,000 (85% of total cost); (2) Rate: LIBOR + 3.45%; (3) Term: 3 years; (4) Non-recourse; (5) Lender Fee: 1.00% in; 1.00% out; (6) Prepayment: Not allowed first 12 months, months 13 to 24 subject to 1.00% fee and no fee thereafter. (Gary E. Mozer, Lee T. Norman, Steven C. Orchard, Gil Barkon)

$17,600,000 Permanent Financing with Five Years I/O in Florida: GSP arranged $17,600,000 in permanent financing for a 224,501 SF office/flex commerce park near Orlando, FL. The property has excellent interstate access, and maintains 94% occupancy. The park's six buildings consist of office, flex, grade level and dock-high industrial space. The borrower has five years of interest only financing. Terms: (1) Rate: 5.66%; (2) Pricing: T+1.05; (3) Term/Amort: 10/30; (4) LTV: 80%; (5) DCR: 1.20; (6) Non-Recourse; (7) Lender Fee: Par (J.Jay Brooks)

$7,800,000, Libor + 1.75%, Interest Only; 80% LTV, Cash out Refinance of a 175 Unit Garden Apartment Complex: This well-located garden apartment complex in the suburbs of Portland, OR was built in 1985 and was acquired by a strong owner operator in the late 1990s. The owner is an experienced owner/operator in the area and has improved the property over the last few years which has allowed for rental increases and a subsequent increase in value. Lender is a major commercial bank. Terms: (1) Pricing: 1 month Libor + 1.75%; (2) No Floor; (3) Term/Amort: 3 year term with two one-year options for a total of five years/Interest Only in years 1-2, 30 year amort in year 3, 25 year amort in years 4-5; (4) LTV: 80%; (5) DCR: 1.20; (6) Recourse; (7) Lender Fee: 1 point; (8) Prepayment: Open to prepayment at any time without penalty. (Mike Gottlieb)

$7,000,000 Cash Out Refinance for Commercial Office Building in Anchorage, Alaska: GSP arranged refinancing for 75% of value for a 77,000 SF office building in Anchorage, AK. The refinance required defeasing the existing 8.34% loan on the property. The property is over 95% leased to a state agency (credit) tenant at below market rents, with only four years remaining on its initial lease term. Justification for the cost of defeasance required the lender's use of a fee simple (market rents) appraisal for the subject, with rollover risk hedged via a springing guaranty of the debt. Borrower locked rate for the new loan at application. Treasury yields increased since application and therefore the borrower enjoyed a lower defeasance cost than originally projected at closing. In addition to the increased returns generated as a result of the refinance, the loan provided the borrower funds for other CRE investments, in addition to allowing for a replat of the property for future development. Terms: (1) Rate: 6.30%; (2) Pricing: T+2.22; (3) Term/Amort: 12/25; (4) LTV: 75%; (5) Non-Recourse; (6) Lender Fee: Par. (Jan Hood)

$4,950,000 Permanent Financing for 100,000 SF Multi-Tenant Industrial Property: GSP arranged $4,950,000 of permanent financing for the acquisition of this 100,000 SF industrial property in Utah. Challenges to the transaction included: (1) a purchase option to an existing tenant in event of sale of the property, and (2) a purchase contract that required fewer estoppels from the seller than the lender needed for securitization. Terms: (1) Pricing: 10-Year T + 1.01%; (2) Term/Amort: 10/30, 2 years interest-only; (3) Prepayment: Defeasance; (4) Non-recourse; (5) Lender Fee: Par. (Larry Wilemon, Mike Sullivan)

$1,250,000 Cash-Out Refinance of a Medical Office Building in Simi Valley: The Sponsor has owned and managed the property since 1968. The property totals approximately 30,000 SF and includes doctor"s offices and out-patient facilities. The property has 100% occupancy, but most tenants have been in the building for a substantial period of time and are now on month to month leases. The property is a class C+ asset with a class A location situated in close proximity to Simi Valley Hospital. A 6.15% rate was locked in July, which accrued significantly to the borrower's benefit by time of closing. Terms: (1) Pricing: 10 Yr Treasury + 1.85%; (2) Term/Amort: 10/25; (3) DCR: 1.25; (4) Non-Recourse (5) Prepayment Penalty: 5%, 5%, 4%, 3%, 2%, 1%; (6) Assumable: 1% fee; (7) Lender Fee: Par. (Larry Wilemon, David Bierman)