$27,500,000 Fixed-Rate Bridge Financing - FINfacts

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	8.25%
3 Mo. T's (YTM)	4.98%
6 Mo. T's (YTM)	5.04%

5 Yr. U.S. T's	4.43%
10 Yr. US T's	4.47%
30 Yr. US T's	4.58%
12- MAT	4.88%

LIBOR - 1 mo.	5.35%
LIBOR - 3 mo.	5.35%
LIBOR - 6 mo.	5.30%
LIBOR - 1 yr.	5.12%

Tier 2++ (80% LTV)	5.64%
Tier 3++ (65% LTV)	5.50%
Tier 4++ (55% LTV)	5.36%
10yr. term/30 yr. amort.

TRANSACTION OF THE WEEK!

$27,500,000 Fixed-Rate Bridge Financing for Three Multifamily Properties in Seattle, WA. GSP arranged cross-collateralized bridge financing (75% LTC) for the acquisition and reposition of three 1950’s built multifamily properties located in Seattle, WA. Property includes 173 total units, 80% of which are one bedroom or single units. Historically, these class-B quality and class-A location properties have been conservatively managed at high occupancy levels with below-market rents. The Borrower’s business plan includes capital improvements of $24,500 per unit, raising the quality of the units to condominium grade, thereby allowing the Borrower to capture top-tier rental rates. Unique Characteristics: (1) Loan allows for the movement of budget line-item cost savings to other budget line-items and between properties; (2) Borrower can reallocate the capital expenditure budget on a quarterly basis; and (3) Borrower can release assets f rom the collateral. Terms: (1) Fixed Rate: 3 Yr T + 2.00%; (2) Term: 36 mos + two 12 mo extensions; (3) Amort: I/O; (3) LTV: 80% (as-is); (4) LTC: 75%; (5) Non-recourse with standard carve-outs; (6) Lender Origination Fee: 0.50%; (7) Exit Fee: 0.50%; (8) Release Provision: 1.10 DCR on remaining assets; (9) Prepayment: 18 Mo Lockout Period, then Yield Maintenance with 6 mo open prepayment window; (10) Actual DCR at closing: 0.69. (Gary E. Mozer, Lee Norman, Larry Wilemon, David Bierman)

$19,140,000 Fixed Rate, Cash-Out, Non-Recourse, 35 Year Amortization Permanent Financing for 147,271 Sq. Ft. Neighborhood Shopping Center in Downtown Los Angeles. GSP arranged permanent financing to refinance a Rite-Aid and 99¢ Store anchored shopping center that includes 96,426 sq. ft. of ground floor retail and 50,845 sq. ft. of industrial warehousing space in a portion of the subterranean basement. The seven building center, which enjoys extensive frontage along Washington Boulevard, was opened in the mid-1980’s and has since established itself as “the” place to conveniently shop in downtown Los Angeles. The property is fully entitled to build 135 market-rate condominium units on top of the original structure which consists of three separate four story buildings surrounding a private courtyard and a detached multi-level 444 stall parking structure built above ground. Due to current market conditions, the owner has decided to hold-off on developing the residential component of this mixed-use project. He plans to revisit the condo development in the next five years, as the downtown market matures. Terms: (1) Pricing: 10 Yr T + 1.00%; (2) Amort: 35 yrs; (3) LTV: 80%; (4) Non-recourse; (5) Prepayment: Locked for 2 yrs, then defeasance; (6) DCR: 1.20; (7) Lender Fee: Par; (8) Subordinate Financing Allowed. (Andrew Levant, Gilda Rivera)

INTEREST RATE/CMBS UPDATE!

Interest Rate Update: Fixed rates remain low as the 10 Year T has been trading in the 4.40’s this week. The 10 Year Swap spread is at 45, and the 5 Year Swap spread is inside 40 at 39. Fixed rate loans with a 5 or 10 year term are being quoted with coupons well under 6.00%. Floating rates: 30 Day LIBOR went up .03% to 5.35%. Some floating all-in loan rates are well over 8.00%. Bridge loan borrowers can either Swap to fixed or take advantage of fixed rate bridge loan programs priced over the 5 Year Swap spread. Stay tuned…… (David R. Pascale, Jr.)

HOT MONEY

Only 17 Business Days Left in 2006! Do You Need to Close by December 31st? George Smith Partners’ Quick Close Private Financing has $50,000,000 Allocated for Must-Close Year-End Transactions. Coming off another record year, our private placement debt group has funded loans nationwide from $1,500,000 to over $50,000,000. Assets have included entitled land, high-end golf resort communities and many other “story” transactions. The loans have enabled our borrowers to buy out partners, restructure partnerships, take advantage of discounted payoffs with existing lenders and purchase assets at large discounts using our innovative structures and fast, assured closing record.

Please contact David Rifkind (drifkind@gspartners.com, ext. 124) to discuss projects you think might benefit from our capabilities.

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

Sean Lurry, Associate: Mr. Lurry Joined George Smith Partners in mid-2006. He previously served as an underwriter at Meridian Capital Group, and clerked for the Prime Minister of Peru. Mr. Lurry received his undergraduate degree from Tulane University.

Omer Ben-Zur, Analyst: Mr. Ben-Zur joined George Smith Partners in early 2006. Previously, he gained diverse professional experience working at several firms including SunCal Companies, First Industrial Realty Trust, and Atrium Engineering & Building. From 2002 to 2004 he served as an Economic Advisor to the Chairman of the State Control Committee in Jerusalem. Mr. Ben-Zur received his Bachelor of Science degree in Industrial Engineering from Tel Aviv University in 2002. He earned a Masters in Business Administration (Concentration in Finance and Real Estate) from the UCLA Anderson School of Management in 2004.

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