Nationwide Bridge Lender Providing up to 100% of Cost

TRANSACTION OF THE WEEK!

$19,000,000 Permanent Financing for a Luxury Hotel Operating Lease in Los Angeles, California. GSP arranged permanent financing for the refinance of a long-term operating lease for a luxury hotel in Los Angeles. The borrower owns the land, built in the 1970’s, and the improvements. A hotel operator leases the premises and runs a flagged hotel at the property. The lease has over 50 years remaining. The borrower locked rate at 4.69% three months prior to closing due to prepayment provisions in the previous financing. Challenges with the transaction included the lessee hotel operator emerging from bankruptcy with new ownership, new management, and ongoing remodeling during the loan application process. Terms: (1) Rate: Interpolated 20 Yr Treasury + 1.08%; (2) Term: 20 yrs; (3) Amort: 20 yrs; (4) Lender Fee: Par; (5) Non-Recourse; (6) Prepayment: Locked for 5 yrs, yield maintenance at UST + 0.25% in yrs 6-20. (Gary E. Mozer, Lee Norman, Larry Wilemon).

$5,325,000 Non-Recourse Financing for the Acquisition of a .76 Acre Site Fully Entitled to Construct Luxury Condominium Residences in Culver City/Marina del Rey, CA. GSP arranged acquisition/bridge financing for a to-be-built condo project comprising six live-work lofts and 33 loft-like condo units on a fully entitled vacant parking lot occupied for the past 20 years by Burger King. It enjoys a superior location just a few blocks from the ocean in Venice and Marina del Rey. The original business plan was to form a venture between two developers and build a 39 unit project. Due to a number of considerations, the developers have opted to sell the property with its entitlements to a condo developer. The acquisition/bridge loan will be repaid from the bulk sale of the property and the borrowers are prepared to obtain a construction loan to repay the bridge loan and proceed with their plans to build the project. The loan funded the acquisition, including closing costs and pre development soft costs. Terms: (1) Rate: 8.5 % (fixed); (2) Term: 6 months; (3) Amort: Interest Only; (4) LTC: 80% (94% of purchase price); (5) Non-recourse; (6) Lender Fee: 1.125%; (7) Extension Option: 6 months; (8) Extension Fee: 0.50%; (9) Exit Fee: 0%. (Andrew Levant, Gilda Rivera).

$4,300,000 (80% LTV) Refinance for Borderline Investment Grade Single Tenant Sav-On near Downtown Los Angeles. This 14,000 Sq. Ft. store features modern design and a drive-through pharmacy. Borrower owned the land and built property with tenant in 2001. Several CMBS lenders topped out at 70-75%, but we were able to place loan with an aggressive single tenant program within a major CMBS lender. Borrower took advantage of an early rate lock just before a run up in treasuries. Terms: (1) Rate: T + 1.23%; (2) Term: 10 yrs; (3) Amort: 30 yrs; (4) LTV: 80%; (5) DCR: 1.20; Lender Fee: Par. (Steve Bram, David R. Pascale, Jr.)

HOT MONEY

Nationwide Bridge Lender Providing up to 100% of Cost Financing for Construction and Value-Add Commercial Real Estate Opportunities. New construction, acquisition, renovation and refinance. No debt coverage requirement. This program is made to order for cash-strapped developers with good transactions. Lender can close quickly for land acquisition & development deals. Highlights: (1) Deal Size: $5,000,000-$35,000,000; (2) Rate: LIBOR + 2.5%-3.5% or Prime + 1%-2%; (3) Loan Term: 1 - 5 yrs; (4) Max LTV: 80% stabilized; (5) Max LTC: 100%; (6) Recourse or Non-recourse; (7) Property Types: Most value-add types; (8) Prepayment: open after 6 months; (9) Fees: 1-4% per year; (10) Geography: Nationwide.

SPEAKERS CORNER

GSP will be hosting a lunch with 35 young leaders from the Los Angeles Jewish Federation on June 21, 2006. GSP Senior Partner Steve Bram will be speaking to them about philanthropy and real estate finance.