$11,907,000 Non-Recourse Senior Financing - FINfacts

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	7.50%
CODI*	1.693%
3 Mo. T’s (YTM)	4.52%
6 Mo. T’s (YTM)	4.67%

5 Yr. U.S. T’s	4.51%
10 Yr. US T’s	4.51%
30 Yr. US T’s	4.47%
12-MAT	3.751%

LIBOR - 1 mo.	4.57%
LIBOR - 3 mo.	4.74%
LIBOR - 6 mo.	4.91%
LIBOR - 1 yr.	5.06%

Tier 2++ (80% LTV)	5.78%
Tier 3++ (65% LTV)	5.64%
Tier 4++ (55% LTV)	5.50%
10 yr. term/30 yr. amort.

TRANSACTION OF THE WEEK!

$11,907,000 Non-Recourse Senior Financing for Acquisition and Development of 73,865 SF Self-Storage Facility and Excess Land to be Entitled for 186 Residential Units. GSP arranged $11,907,000 of non-recourse senior financing (86% of total project cost) for the construction of a 73,865 SF self-storage facility and entitlement of 186 residential condominium units in Southgate, CA. The Property: To-be-built 73,865 SF of self-storage and 186 condominium units on 6.43 acres. Issues: The site formerly hosted a manufacturing plant, and was utilized for fuel cell testing and fire training. Soil under the building is known to be contaminated but can be fully controlled by encapsulating the affected area. Acquisition of the site was contingent upon the seller delivering a “No Further Action” letter for the entire site from the California Environmental Protection Agency’s Department of Toxic Substances Control. Terms: (1) Rate: LIBOR + 4.50%; (2) Term: 3 years; (3) LTC: 86%; (4) Non-recourse; (5) Lender Fee: 1% in; 1% out; (6) Prepayment: Not allowed first 12 months, except in connection with sale of residential parcel months. (Gary Mozer, Lee T. Norman, Steven C. Orchard, Gil Barkon)

$2,288,000 95% LTC Permanent Financing for Office Building in Anchorage. GSP arranged a $2,288,000 CMBS loan for a 29,907 SF office building in Anchorage, AK. At application, the under-managed building was 30% vacant and operating expenses were 50% above comparable properties. GSP negotiated the ability to close with no holdbacks if the building exceeded 90% occupancy, and met trailing three month operating expense expectations. During the application period the borrower met the underwriting expectations including 97.5% occupancy. Tax and Insurance impounds were waived. Terms: (1) Rate: 5.79%; (2) Pricing: T+1.35; (3) Term/Amort: 10/30; (4) DCR: 1.30 (5) Non-Recourse; (6) Lender Fee: Par. (Jay J. Brooks)

$1,900,000 Cash-Out Refinance for a Creative Office Building in Venice, CA. The collateral is a three-tenant creative office building consisting of two one-story buildings with a net rentable area totaling 10,449 SF. The property, built in 1955/1956, was renovated in 1985 into a three-tenant creative office building. It is currently 100% leased and comprised primarily of local businesses including architectural firms, technology firms, entertainment companies and other smaller “creative office” oriented businesses. The excess proceeds will be held by the borrower in an interest bearing account and to be used strictly for TIs, LCs, CapEx and other operating deficits, thus impounds and reserves were waived by the lender. Terms: (1) Fixed Rate: 10 yr. T + 1.15%; (2) Term: 10 years; (3) Amort: 30 yrs.; (4) LTV: 41%; (5) Non-Recourse; (6) Prepayment: Defeasance; (7) DCR: 2.02; (8) Lender Fee: Par. (Andrew Levant , Gilda Rivera)

HOT MONEY

Nationwide Lender Offering Multiple Lending Products. This lender offers land, bridge, construction, conduit, and balance sheet fixed rate loans. They also offer in-house mezz for senior loans they originate. Program Highlights (Construction): (1) Deal Size: $3,000,000+; (2) Rate: 85% total LTC with blended pricing between senior and mezz of L + 250 to L + 350; (3) Recourse; (4) No lockout. Program Highlights (Bridge): (1) Deal Size: $3,000,000+; (2) Rate: 90% total LTC with blended pricing between senior and mezz of L + 250 to L + 325; (3) Recourse; (4) No lockout.

SPEAKERS CORNER

GSP Principle Gary M. Tenzer will moderate a panel on structured finance at the Real Estate Outlook Conference in Los Angeles on March 13, 2006. For more information, please go to www.realestateoutlook.com.

On February 9, GSP Associate Aaron Wright spoke on a panel to USC's undergraduate Trojan Real Estate Association. Mr. Wright spoke about making the transition from college to the workplace, current transactions, and his responsibilities as a broker and associate.