GSPartners
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Volume XV | No. 17 | May 16, 2007
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KEY RATE INDICES
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Prime Rate
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8.25%
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1 Month LIBOR
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5.32%
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5 Yr US Treasury
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4.62%
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5 Yr Swaps
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5.11%
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12-MAT
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5.03%
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3 Month LIBOR
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5.36%
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10 Yr US Treasury
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4.70%
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10 Yr Swaps
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5.25%
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11th Dist COFI
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4.30%
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6 Month LIBOR
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5.37%
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30 Yr US Treasury
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4.87%
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| | | Transaction Description: | $13,050,000 (95% LTC) Financing for 66,290 Sq. Ft. Retail Center in Murray, UT. GSP arranged $11,560,000 of senior permanent financing (85% LTC) and $1,490,000 of mezzanine financing (95% LTC) to finance the acquisition of a 66,290 sq. ft. retail center located in Murray, Utah. Originally built in 1965, the Big Lots anchored/grocery shadow anchored property is 98.5% leased, including 39% to a single tenant through September 2010.
Unique Characteristics: The same lender is providing 10 year permanent debt financing at 95% of total costs. The single tenant is paying significantly below market rents and will likely vacate at the end of its renewal option in September 2015, which is during the loan term. |
| | Rate: Senior: 10 Yr T + 1.35%; Mezz: 10% cumulative preferred return + 15% pari passu profit participation | | Term: 10 yrs | | Amort: Interest Only | | LTC: Senior: 85%; Mezz: 95% | | DCR: 1.20 actual | | Lender Fee: Senior: Par; Mezz: 1% |
Key Players: Gary E. Mozer, Steven Orchard, Joshua Roseman |
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| | | Interest Rate/CMBS Update | Treasuries yields have risen for three straight days after last week’s Fed meeting. Although the Fed left rates flat (again), the accompanying statement indicated a hawkish stance on inflation that sent yields up. Tuesday’s tame inflation numbers led to a very slight rally. The 10 Year T is at 4.68%. CMBS: Market still trying to determine where “break-even” is, lots of kick-outs of aggressively underwritten transactions, approximately $60 billion “overhang” of unsecuritized paper as bond buyers and B buyers cherry pick or demand higher yield. Originators still quoting and closing, some more aggressively than others. Stay tuned…. (David R. Pascale, Jr.) | | | Speakers Corner | May 17, 2007
Steve Bram, GSP Principal and Senior Director, will participate in a panel discussion on “The Apartment Market in 2007: Can a good thing last forever?” at the 2007 San Fernando Valley Economic Summit. Other panelists include:
· Steve Heimler, President and CEO, Stratus Real Estate
· John Walsh, Vice President/Investments, Marcus & Millichap
· Rick Entin, Principal, Entin Properties (moderating)
The panel will explore current market conditions and the near and long term outlook for the multi-family sector in the Greater San Fernando Valley. Panel experts will discuss topics including investment sales activity, management issues, development and conversion activity, and the related debt and equity markets.
The conference is on Thursday May 17, 2007, 7:30 am – 1:30 pm at the Sheraton Universal Hotel. For more information, 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 inquiries to Todd August, Chief Operating Officer, at (310) 557-8336, Ext. 125.
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©2007 George Smith Partners, Inc. FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
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