GSPartners
|
|
|
Volume XV | No. 6 | February 28, 2007
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
8.25%
|
1 Month LIBOR
|
5.32%
|
5 Yr US Treasury
|
4.52%
|
5 Yr Swaps
|
4.99%
|
|
12-MAT
|
4.98%
|
3 Month LIBOR
|
5.36%
|
10 Yr US Treasury
|
4.56%
|
10 Yr Swaps
|
5.10%
|
|
11th Dist COFI
|
4.40%
|
6 Month LIBOR
|
5.37%
|
30 Yr US Treasury
|
4.68%
|
|
|
|
| | | Transaction Description: | | $39,750,000 Construction Completion Loan on a Partially Completed 300 Unit Luxury Low-Rise Condo Project in Henderson, NV. The developer was beset by a series of unfortunate events: The existing lender was unable to advance further construction funds due to a cost overrun. The mezzanine lender was also unable to advance funds and the project was facing complete shut down. GSP was called in to replace the existing senior lender with a new construction loan designed to complete the project and allow for sales to commence on the first building as quickly as possible. This transaction required GSP to engage in complex negotiations with both existing lenders and the developer/contractor to make sure that each party’s interests were being addressed while ensuring that the new structure met the needs of a successful completion. |
| |
|
| | | Hot Money | National Lender Offering Par Pricing and Zero Prepay on Fixed Rate Loans. Must be stabilized property with seasoned cash flow. Interest only available up to five years. Will consider non-recourse with step down prepay.
Property Types: retail, industrial, mobile home parks, self storage, hospitality, special purpose, including gas stations, fitness centers, movie theaters | | HIGHLIGHTS | | Transaction Size: $1,000,000-$30,000,000 | | Rate: CMT + 190-250 | | Loan Term: 5-10 yrs | | Amort: I/O up to 5 yrs; 25-30 yrs | | Max LTV: 80-85% | | Min DCR: 1.20-1.25 | | Fees: Par to 1% | | Geography: Nationwide | Recourse to non-recourse
Prepayment: None or step down
|
|
| | | Interest Rate/CMBS Update | Huge Bond Market Rally! 10 Year T at 4.51%. Why? (1) Greenspan predicts "recession at year end"; (2) Chinese stock market "mini-crash"; (3) "Flight to quality" as investors sell US stocks; (4) Durable goods report indicates slowing economy. All this after several pundits indicated "the bond market rally is over" earlier this month! The CMBS market: We are hearing that spreads are widening slightly today (Tuesday) but the plunge in the Treasury is creating incredible coupon opportunities as borrowers rush to lock rate. Stay tuned… (David R. Pascale, Jr.) | | | | | | Speakers Corner |
Steve Bram, GSP Principal and Senior Director, will participate in the Third Annual Wharton/UCLA Real Estate Breakfast Panel on March 21, 2007. The theme is "Sustainable, Yet Profitable, Mixed-Use & Hospitality Real Estate Development"
In addition to Steve Bram, panelists include:
· Steve Soboroff (President, Playa Vista)
· Zev Yaroslavsky (3-Term LA County Supervisor)
· Eric Prevette, (EVP Resorts, Irvine Company).
The event will be at the Island Hotel, Newport Beach (formerly Four Seasons Hotel) at 7am-9:30am. For more information, click here.
Larry Wilemon, GSP Senior Vice President, will moderate ICSC Los Angeles’ Next Generation Program and Reception titled "Outlook 2007: A Fresh Perspective on Our Industry." The panel discussion will be Thursday, March 8, 2007, 6:30-9:00 pm at Maggiano's – The Grove.
Speakers include:
· Sandy Sigal, President & CEO, NewMark Merrill Companies, Woodland Hills, CA
· Fariba Kavian, Senior Vice President, Sperry Van Ness, Los Angeles, CA
· John Tronson, Principal, Ramsey-Shilling Commercial Real Estate Services, Los Angeles, CA
The evening will be filled with engaging conversation, great networking opportunities and appetizers! A leading developer and heavy-hitting retail brokers will share their insight on current market conditions and where they believe we are headed in 2007. To register, click here.
| | | Join Us As We Reach New Heights | George Smith Partners is in the midst of a record-setting period of growth. As we continue to reach new heights, we are selectively seeking several seasoned and successful financial professionals to join our team. Please direct confidential inquires to Todd August, Chief Operating Officer, at (310) 557-8336, Ext. 125.
|
|
|
©2007 George Smith Partners, Inc. FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
