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TRANSACTION OF THE WEEK!
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| $16,200,000 (1.05 I/O DCR) Fixed Rate, Permanent Financing for an Anchored Retail Center in Colton, CA. GSP arranged financing for the refinance of a 78% occupied, 108,000 sq. ft. retail center that is shadow anchored by a Wal-Mart. The borrower purchased the property 18 months ago with a dark Von's store. The borrower released the Von's space to two national credit tenants both of which have opened for business but have yet to pay rent. GSP structured the financing to include payment of rent for several months until the anchor rent was paid and funding of TI/LC reserves for the remaining vacant space. In addition the loan funded tenant improvement costs and leasing commissions associated with the two new anchor tenants. In order to achieve the requested loan amount the lender underwrote the loan to a 1.05 interest-only DCR. Terms: (1) Rate: 6.18% (10 Yr T + 1.50%); (2) Loan Term: 10 yrs; (3) Amort: 5 years I/O, then 30 yrs amort; (4) LTV: 80%; (5) DCR: 1.05 in-place, 1.15 stabilized; (6) Non-Recourse; (7) Lender Fee: Par; (8) Prepayment: Defeasance. (Steve Bram, Shlomi Ronen, Anna Saucier) |
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| $11,700,000 Fixed Rate, Non Recourse Permanent Financing for 73,755 Net Rentable Sq. Ft. Creative Office Building in San Francisco, CA. GSP arranged permanent financing for the acquisition of a highly improved and reinforced brick and timber four story office building. The property is well-located in San Francisco's Lower South of Market (SOMA) neighborhood, right in the heart of the technology and media district. It is leased to major tenants including Sony Corp, Razorfish, San Francisco Credit and Wells Fargo. The multi-tenant property was constructed in 1912 but fully renovated in 2000 and is currently 100% occupied. With the combined influence of a recovering office market and office inventory lost to conversion, it is anticipated that this property will experience a significant increase in rents and occupancy during the next economic cycle. Terms: (1) Rate: 10 yr CMT + 1.60%; (2) Term: 10 yrs; (3) Amort: 27 years; (4) LTV: 63%; (5) Non-recourse; (6) Prepayment Penalty: Full (no partial prepayment) - at anytime upon premium of 2% during term of the loan. In the event of sale or refinance, the pre-payment penalty will be reduced to 1% if lender does not exercise its right of refusal to provide financing; (7) DCR: 1.25; (8) Lender Fee: 0.75%; (9) No taxes and insurance impounds; (10) Holdback/Rent Achievement: $1,700,000 will be withheld from initial funding and not funded until rolling tenants sign new leases for a minimum term of 3 years at same or greater rents for spaces currently occupied. (Andrew Levant, Gilda Rivera). |
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HOT MONEY
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Nationwide Portfolio Lender Providing Permanent Financing With No Prepayment Penalties on Any Cash-Flowing Properties. Lender will finance in primary, secondary or tertiary markets on properties including single tenant, hospitality, health care, non-profits and other special purpose properties. Sample Transaction: Lender provided short term financing for an affordable housing project that was taken out by HUD financing. Highlights: (1) Transaction Size: $1,000,000-$40,000,000; (2) Rate: CMT + 200-300; (3) Loan Term: Fixed or Floating, up to 7 yrs; (4) Amort: 25-30 yrs; (5) Max LTV: 75% (80% if Owner Occupied); (6) Min DCR: 1.20-1.45; (7) Recourse; (8) No reserves or impounds required; (9) Property Types: All cash-flowing property types; (10) Prepayment: Open; (11) Fees: 0.5-1%; (12) Low processing and third part y fees - just appraisal and phase I; (13) Rapid processing time, most loans close within 45-60 days (14) Geography: Nationwide.
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CONGRATULATIONS TO GSP'S SID WALLIS!
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| Sid has been around long enough to have seen a lot... 16 presidential administrations, the real estate market's highs and lows, and now his first great-granddaughter. Sid and wife Betty have two children, six grandchildren, and now one great-grandchild. Sid's granddaughter Lindsey and husband Brian brought this new addition into the family last week. Highlights: (1) Name: Corinne Leigh Malloy; (2) Birthday: December 14, 2006; (3) Weight: 7 lbs; (4) Length: 18 in. |
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SEASONS GREATINGS!
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This is the last Fin Fax of 2006
We at George Smith Partners wish you and yours a Happy Holiday Season and great success in 2007!
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