Lines of Credit from $3,000,000 to $300,000,000!

TRANSACTION OF THE WEEK!

$47,500,000 (71% LTV) Permanent Financing for 92,729 Sq. Ft. Retail Center in West Los Angeles. GSP arranged $47,500,000 to refinance a 92,729 sq. ft "vertical power center" located in the heart of West Los Angeles. The property is 100% leased, including 81.6% to two anchor tenants whose leases are guaranteed by a BBB+ rated company. Unique Characteristics: (1) Loan is for 12 years (16 months beyond expiration of the two anchor tenants); (2) Interest only for the entire term; (3) Underwriting includes 2% vacancy and average 10 year rent on the two anchor tenants (81.6% of the property). Total loan proceeds are at $512 psf. Terms: (1) Rate: 12 Year Swap + 0.45%; (2) Term: 12 yrs; (3) LTV: 80%; (4) DCR: 1.07; (5) Non-Recourse; (6) Loan Fee: Par. (Gary E. Mozer, Lee Norman, Steven Orchard, Joshua Roseman, David Bierman)

$25,000,000 (75% LTC) Non-recourse Bridge Loan for a Vacant Industrial Building in San Fernando, CA. GSP arranged a bridge loan for a 400,000 sq. ft. vacant industrial building located on a roughly 22 acre site to be re-developed into for-sale industrial condominium units. The property was previously occupied by a single tenant owner-user and is ideally located near the crux of the 5 and 118 Freeways. In addition to funding the acquisition, the loan included holdbacks for interest reserve and a small construction component necessary to demise certain walls for a 120,000 sq. ft. lease that was signed by a national credit just prior to closing. The lender will permit partial releases of the collateral upon obtaining a parcel map and the subsequent sale of the condominium units which may range in size from 5,000 to 120,000 sq. ft. Terms: (1) Pricing: LIBOR + 380; (2) Loan Term: 12 months with one 6 month extension option; (3) Amort: Interest only; (4) Non-recourse; (5) LTC: 75% of the total purchase price and 65% of initial total capitalization; (6) Lender Fee: 1%; (7) Exit Fee: 1%. (Andrew Levant, Gilda Rivera)

HOT MONEY

Lines of Credit from $3,000,000 to $300,000,000! This program allows a borrower to take advantage of opportunities requiring "fast action" at attractive LIBOR-based pricing. GSP has a long-standing relationship with this national bank offering affordable lines of credit and has arranged several hundred $million in recent years. Borrowers pay fees only on portions of the line used. The bank requires a depository relationship. Program Highlights: (1) Transaction Size: $3,000,000-$300,000,000; (2) Loan amount is based on 3X multiplier of borrower's predictable overall net cash flow after debt service; (3) Rate: 30 Day LIBOR + 1.00% - 3.50%; (4) Amort: Interest Only; (5) Fees: 1% of funds drawn; (6) Geography: Nationwide.

INTEREST RATE/CMBS UPDATE!

Treasuries spiked from their recent low of 4.54% on hawkish Fed talk (up to 4.80%), then rallied today to 4.75% as bond traders focused on the "non-inflationary" news in a decidedly mixed PPI report. The new consensus is drifting away from a rate cut in early 2007 to a "flat line" scenario of no raising or cutting for a while. CMBS: Originators remain very aggressive as they are trying book year end 2006 business, which typically needs to be in application by Halloween. Stay tuned... (David R. Pascale, Jr.)

SPEAKERS CORNER

Aaron Wright, GSP Assistant Vice President, spoke to undergraduate real estate students at the USC Marshall School of Business on October 3, 2006. The students are engaged in a semester-long real estate development feasibility course focusing on an actual project in Los Angeles. Aaron presented financing structures to guide the project from the entitlement process through completion.