National Bank Lending to Cooperatives - FINfacts

KEY RATE INDICES

FANNIE MAE RATES *

Prime Rate	7.50%
3 Mo. T’s (YTM)	4.61%
6 Mo. T’s (YTM)	4.75%

5 Yr. U.S. T’s	4.71%
10 Yr. US T’s	4.68%
30 Yr. US T’s	4.66%
12-MAT	3.75%

LIBOR - 1 mo.	4.66%
LIBOR - 3 mo.	4.84%
LIBOR - 6 mo.	4.99%
LIBOR - 1 yr.	5.14%

Tier 2++ (80% LTV)	5.92%
Tier 3++ (65% LTV)	5.78%
Tier 4++ (55% LTV)	5.64%
10 yr. term/30 yr. amort.

TRANSACTION OF THE WEEK!

$21,500,000 Bridge loan on Newly Built Vacant 150,000 SF Class A Office Building. GSP secured this bridge loan to take out a construction loan that had matured. Initial funding was $12,550,000, with an $8,950,000 reserve for tenant improvements, leasing commissions, a $2,160,000 reserve for two years of interest payments and carrying costs. Borrower's goal was achieved because they will not have to come out of pocket during the lease up period. Challenges to the loan were overcome by the following: (1) Borrower has over $8,000,000 cash equity in the transaction; (2) Strong borrowing entity with recourse; (3) Tight office submarket and good leasing prospects with a credit tenant; (4) Existing relationship with the borrower; (5) Borrower has strong operating experience in this submarket; (6) Total cost approximately $24,000,000 with the shell completed in excellent condition; (7) Adjacent entitled 5 acres provided as extra security. Lender underwriting factored in market rents, market tenant improvements, and a conservative downtime of two years. Terms: (1) Rate: 1 month LIBOR + 2.25%; (2) fully funded interest reserve; (3) Term: 2 years; (4) Amort: Interest only; (5) Loan to stabilized value: 75%; (6) Recourse to Principals; (7) No prepayment penalty; (8) Lender Fee: 0.75%. (Mike Gottlieb)

$19,260,000 Construction Loan and $3,000,000 Mezzanine Loan for a 66-unit Ground-Up Condominium Development in Bremerton, Washington. GSP arranged $19,260,000 of senior construction financing (80% of total project cost) and a $3 million mezzanine loan (up to 90% of total project cost) for the construction of 66 condominium units. The property is well located along the Bremerton waterfront, walking distance to the local Seattle ferry station. Bremerton has historically been an old navy town. This project is part of a larger citywide redevelopment of the area. The project is pioneering, but received tremendous interest, pre-selling more than 40% of the units prior to breaking ground. Terms (Senior): (1) Rate: Prime + 1.00%; (2) Term: 18 months; (3) LTC: 80%; (4) Recourse; (5) Lender Fee: 1%. Terms (Mezz): (1) Rate: 18%; (2) Term: 18 months; (3) LTC: 90%; (4) Recourse. (David Rifkind, Steve Bram, Noah Hahn)

$6,900,000 Construction Loan for a 23-Unit Luxury Apartment Building in the Beverlywood District of Los Angeles, CA. GSP arranged financing for construction of a 23-unit luxury apartment building on three parcels of land totaling 18,463 s.f. located in West LA’s Beverlywood district, between Olympic and Pico Blvds. Terms: (1) Pricing: 30-day LIBOR + 1.85%; 0.25% fee to extend term 12 months with a 30 year amort; (2) Loan term: 24 months; (3) Amort: Interest Only; (4) LTV/LTC: Lesser of 85% LTC; 75% LTV; or that provides 1.15 DCR @ 7.00% Interest Rate; (5) Guarantee: Recourse with Construction Guarantee; (7) Lender Fee: 0.50%; (8) No Fund Control Required. (George Smith, James Smith)

$8,800,000 for Single Tenant Fitness Center in San Gabriel Valley. Our borrower purchased this 37,500 s.f. property in the late 1990’s as a vacant, closed department store. They built a three level parking garage next door and worked with the tenant to build out a state-of-the-art gym facility, including swimming pool. Tenant pays above market rent as some TI costs are amortized into the lease. GSP arranged CMBS financing for this non-credit, single tenant, special purpose property at the following terms: (1) Rate: 10 year T + 1.30%; (2) Term: 10 years; (3) Amort: 30 years; (4) LTV: 70%; (5) DCR: 1.35; (6) Non recourse; (7) Lender Fee: Par.
(Steve Bram , David R. Pascale, Jr., Farzin Emrani )

$2,850,000 (90% LTC) Permanent Financing for 3-Property Portfolio of Industrial Buildings and Mini-Storage in Reno, NV. GSP arranged a $2,850,000 bank loan for a (1) 30,000 s.f. flex industrial, 5 tenants, 80% occupied; (2) 25,000 s.f. flex industrial building, 4 tenants, 75% occupied; and (3) 25,000 s.f. self-storage property, 85% occupied. All properties are located in Sparks, NV (near Reno). Upon entering application, borrower early rate locked for $2,500 deposit. The three properties were cross-collateralized with release provisions at 110% of outstanding debt balance per property. No tax or insurance impounds. Terms: (1) Rate: 5.96%; (2) Pricing: 10 Yr CMT+1.60; (3) Term/Amort: 10/30; (4) DCR: 1.25 (5) Non-Recourse; (6) Lender Fee: 0.5%; (7) Prepayment Penalty: 3% Yr 1, 2% Yr 2, 1% Yr 3, no prepayment after year 3. (Farzin Emrani , Steve Bram )

$1,100,000 Fixed Rate Financing for Single Tenant Retail Building in Southern California. GSP arranged 65% LTV permanent financing for a 6,300 s.f. retail building with above-market rents. GSP was able to prove to the lender that properties along the same thoroughfare as the subject commanded higher rents than other nearby retail. After working with leasing brokers, GSP was able to get rent comps not found in the major rent comparable databases. The property consists of two adjacent buildings sharing a common wall and occupied by a single tenant. Terms: (1) Pricing: 7 year T + 1.90%; (2) LTV: 65%; (3) DCR: 1.25; (4) Term: 7 Years; (5) Amort: 25 years; (6) Full Recourse; (7) Lender Fee: Par. (Gary M. Tenzer , Aaron Wright)

HOT MONEY

National Bank Lending to Cooperatives and Other Member-Owned Organizations Including Condominium HOA’s. Unique program from a lender that understands cooperative associations. Loans typically used to refinance existing mortgages, to provide for anticipated repairs and capital improvements, and for the return of owner's equity. Program Highlights: (1) Deal Size: $1,000,000-$100,000,000; (2) Rate: Typically fixed at spread over the applicable US Treasury. Interest-only periods and floating- rate loans available as well; (3) Term/Amort: Up to 15 years with amort self-liquidating based upon the term. The term can include an initial line of credit draw down period of up to 12 months; (4) LTV: 80%; (5) DCR: 1.20; (6) Prepayment: For fixed-rate loans, generally, a prepayment lockout period of 24 months followed by defeasance, with open prepayment window during last 90 days prior to maturity. Floating-rate loans can be prepaid at any time without penalty; (7) Guarantees: Fixed-rate loans are non-recourse. Floating-rate loans may carry some level of personal guarantee; (8) Lender Fee: Par.

Nationwide FHA-Approved Lender Providing Long-Term (35-40 Year Terms) , Fixed-Rate, Fully Amortizing Permanent Financing for Acquisition, Refinancing, Rehabilitation and/or Construction of Multifamily and Healthcare Properties. (1) Deal Size: Varies, but typically between $2,000,000 - $100,000,000; (2) Pricing: Fixed rate, 10 yr T +. 90-1 .00 %; (3) Term /Amort: up to 35 /35; 40 /40 for new construction & rehab; (4) Non-Recourse; (5) No yield maintenance; (6) No balloon payments.

SPEAKERS CORNER

GSP President Steve Bram will be speaking at the Century City Chamber of Commerce "How High is the Sky?" Westside Commercial Real Estate Leasing & Finance Forum on Thursday, March 9. He will be discussing current trends in financing.