Nationwide Portfolio Lender Offering High Leverage

TRANSACTION OF THE WEEK!

$14,000,000 Land Loan on Four Acres of Prime Infill, Entitled for Condominium Development. GSP arranged a purchase loan to bridge the time between the land acquisition and the commencement of construction. Borrower optioned property prior to entitlements and closed when tract map recorded creating imputed land equity. Lender recognized imputed equity and committed to an initial funding of 93% of purchase price. Lender committed to fund pre construction costs, post closing, not to exceed 70% loan to value. Land Loan Terms: (1) Rate: 6 month LIBOR + 3.50; (2) Term: 12 months, Interest only; (3) LTV: 65%; (4) Non Recourse; (5) Lender Fee: 1.5%; (6) Lender: A national bank aggressively seeking construction, value added, bridge loans. (Henry Bryan)

$9,650,000 Permanent Financing Fixed at 6.09% for a 70,483 Sq. Ft. Retail Center. GSP secured a permanent loan to refinance a 70,483 Sq. Ft. neighborhood shopping center on a 304,920 Sq. Ft. lot (7 acres, loan is $136.90/Sq. Ft.) located in Marin County California. Challenges : (a) The property is contaminated with trace elements of PCE from dry-cleaning solvent; (b) Some tenants are paying over-market rents. Solutions: (1) An environmental monitoring program showing declining levels of contamination helped GSP get the lender comfortable with the property; (2) GSP demonstrated that the over market tenants are special use, so a replacement tenant of similar use would pay the same rate. Terms: (1) Rate: 10 Yr T + 1.05% (6.09% coupon); (2) LTV: 70.16%; (3) Amort: I/O yrs 1-3, 30 yr schedule thereafter; (4) Term: 10 yrs; (5) Non-Recourse ; (6) Lender Fee: Par; (7) Reserves: Standard impounds for taxes & insurance. $0.15/Sq. Ft. reserved annually for capital expenditures. Leasing reserves waived unless occupancy drops below 85%, then $0.30/Sq. Ft., capped at $65,000. Cashflow sweeps required if anchor tenant fails to renew its lease 6 months prior to expiration. (Gary E. Mozer, Lee T. Norman, Steven C. Orchard, Joshua M. Roseman)

$8,000,000 Construction Loan, 84% LTC, for a 32,000 Sq. Ft. Medical Office Building in Valencia, CA. Working on behalf of six individual dental practices collectively forming a single borrowing entity, GSP arranged $8,000,000 in construction financing to develop a 32,000 Sq. Ft. medical office building in Valencia, CA. The project is a ground up concrete slab office building on a parcel originally sub- divided from the Newhall Land Company. Terms: (1) Rate: Prime + .25%; (2) Term: 12 months + two 3 month extensions; (3) Recourse; (4) LTC : 84%; (5) Lender Fee: .5%. (Steve Bram, David R. Pascale, Jr., Jonathan Lee)

HOT MONEY

Nationwide Portfolio Lender Offering High Leverage Senior and Mezzanine Financing. Lender will consider all property types and complicated transactions. Wide appetite for transactions requiring detailed risk assessment. Can close quickly. Highlights: (1) Deal Size: $5,000,000-$200,000,000; (2) Rate: Priced to risk over LIBOR; (3) Loan Term: Senior 2-12 yrs, Mezz 2-5 yrs; (4) Amort: Flexible depending on deal type; (5) Max LTC: 95%; (6) Standard non-recourse carve outs; (7) Property Types: All; (8) Prepayment: Flexible; (9) Fees : 0.5% - 1%; (10) Geography: Nationwide.

SPEAKERS CORNER

GSP Senior Partner Gary M. Tenzer will be a panelist at the Ross Minority Program in Real Estate Finance and Development, Developer Panel Dinner on Tuesday, June 13, 2006 at the USC Main Campus. The USC Ross Minority Program in Real Estate is an intensive, comprehensive, educational program that is designed to provide urban developers with the technical expertise and access to resources needed to develop significant urban real estate projects in their communities. The Developer Panel Dinner is an informal panel during the first week of the program where speakers discuss their role in the development process, their industry segment, and their thoughts on the current market conditions.