Nationwide Portfolio Bridge Lender Providing up to 85%

TRANSACTION OF THE WEEK!

$15,300,000 Forward Commitment for Permanent Loan for 64,000 SF Retail Center. GSP arranged a 6-month forward commitment for $15,300,000 of permanent financing to serve as a “take-out” of a construction loan on this 64,000 Sq. Ft. retail center in Central Los Angeles. The center is 85% preleased and will be anchored by a 14,000 Sq. Ft. national drug store. In exchange for a 3 bps increase in the spread, the borrower secured the option of arranging mezzanine financing for the property in the future. Terms: (1) Rate: 10 Yr T + 1.21 % (2) Loan Term: 10 yrs; (3) Amort: 30 yrs; (4) Non-recourse; (5) Prepayment: Defeasance; (6) Lender Fee: Par. (Larry Wilemon, Gil Barkon)

$11,000,000 Land Acquisition and Development Facility for 38-Home Subdivision in Orlando, FL Property is located near Walt Disney World and has an average projected home sale price of $350,000. These homes are typically purchased by the British, who live in the home two months of the year and rent out the house the other ten months. This financing represents the first deal for this new homebuilding venture comprised of a financial partner in San Jose, CA, a semi-retired homebuilder from San Jose, and a vacation rental development project manager in Orlando who quit his job to join this new start up. Borrower net worth, liquidity, and experience were minimal. This deal took 2.5 years to complete, due to borrowers’ lack of experience. Terms: (1) LTC: 85% of land A&D cost, and 100% of homebuilding construction cost; (2) Rate: LIBOR + 4.25%, reducing to LIBOR + 3.75% when the loan rolls into the construction revolver; (3) Term: 24 months; (4) Lender Fee: 1%; (5) 125% accelerated releases as units move to the construction revolver; (6) 10% pre-sales requirement. (Michael Schwartz, Kevin Holliday)

$1,050,000 Variable Rate, 70% LTV Recourse Acquisition Financing of a Beverly Hills Adjacent 4-Unit Apartment Building. GSP arranged bridge acquisition financing of a property that our client will develop into a newly constructed condo mapped multifamily property. The reposition is scheduled for one year from now. The loan features a teaser start rate of 2.275% for first year and one year 2% prepay ideal structure for the borrower’s development plans. Terms: (1) Rate: 12 MTA + 3.75%; (2) Term: 30 yrs; (3) Amort: 30 yrs; (4) LTV: 70%; (5) LTC 70%; (6) DCR 0.55; (7) Recourse; (8) Prepayment Penalty: One year 2% then open; (9) Lender Fee: Par. (James Smith)

HOT MONEY

Nationwide Portfolio Bridge Lender Providing up to 85% of Total Project Costs on Empty or Half Empty Buildings. Lender will recognize total project costs including interest reserve, rehab, tenant improvements, leasing commissions, carry costs. Will do major rehab, repositions of very large properties and/or portfolios. Highlights: Loan size: $20,000,000 or more; Term: 3-5 yrs; Amort: Interest Only; Non-recourse; Max LTC: 85%; Property Type: Multifamily, Retail, Office, Industrial, Hotel; Pricing: LIBOR + 225-325; Lender Fee: 1.0%.

SPEAKERS CORNER

GSP President Steve Bram will speak at the Real Estate Council’s Los Angeles Regional Luncheon on Monday, June 12, 2006. His featured luncheon speaker topic will be “Update on Financing Markets: Insight into How Lenders are Thinking and Lending Today.” For more information, please e-mail recouncil@cornell.edu or call Dorothy Vanderbilt at (607) 255-8962.

GSP PROFILE

(Part of our continuing series profiling GSP's "Next Generation" of Brokers)

Steven Yazdani: Mr. Yazdani joined GSP full-time in February 2006 after graduating from the University of Southern California where he obtained a Juris Doctorate from the Gould School of Law and a Masters of Real Estate Development from the School of Policy, Planning and Development. He received his Bachelors Degree in Business Administration with a concentration in Finance from UC Berkeley’s Haas School of Business.

Prior to GSP, Mr. Yazdani worked in real estate investment and development for the Bond Companies, RW Selby & Co. and Westwood Financial Corporation where he was responsible for underwriting, due diligence and creating financial models. In graduate school, Mr. Yazdani worked for a real estate law firm where he was responsible for reviewing purchase & sale agreements, title & survey review and legal research. Additionally, while in graduate school Mr. Yazdani co-founded and operated a residential mortgage company which closed in excess of one hundred loans.

Mr. Yazdani is a member of the California State Bar Association and his broker’s license is currently being processed by the DRE. Mr. Yazdani can be reached at ext. 119 or (syazdani@gspartners.com)

CONGRATULATIONS TO GSP’S NEWEST PRINCIPAL, MICHAEL SCHWARTZ

Due to formatting issues in our last issue of Fin-Fax, some of our readers received an incorrect version of the announcement about our newest Principal. Therefore, we are publishing the corrected version here:

George Smith Partners is pleased to announce that Michael Schwartz has been made a new principal of the firm. Michael joined GSP in 1997, initially working with George Smith and eventually developing his own book of business with a loyal base of clients, trusted third party vendors and business broker referral sources. Michael has arranged over $1.5 billion in conventional, structured, and unconventional financing transactions. Some of the highlights have included (1) low leverage and trophy asset financings, (2) full leverage fixed rate permanent loans, customized to the client’s specifications and at cutting edge interest rates, (3) numerous 100% of cost construction and land development loans, (4) redevelopment and public/private JV financings, (5) a letter of credit facility creating a 1% interest rate for the borrower, (6) refinance and acquisition loans for vacant and low occupancy properties, (7) farm loans and other unusual product types, (8) and three day fundings as necessary.

Michael also enjoys intellectual pursuits and has created numerous, sophisticated financial templates in Excel which have been adopted by GSP as well as have been recognized by industry experts for their elegant and simplistic modeling techniques. Michael co-authored a book about JV equity modeling in Excel with Dean Altshuler, PhD and CFA. Michael has been teaching and developing GSP’s credit and underwriting training program for the company’s analysts and associates. Michael received his BA in linguistics from the University of Michigan and has an MBA in finance and real estate finance with Honors from Columbia Business School. Congratulations to Michael and his wife Sandra Koutal Schwartz, who are expecting twins in July.

AT HOME IN OUR NEW DIGS!

We are pleased to announce that we have completed our move to the beautiful MGM Tower in Century City!

Our new address is:

10250 Constellation Blvd., Ste. 2700
Los Angeles, CA 90067

Our phone and fax numbers remain the same

www.gspartners.com