GSPartners
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Volume XV | No. 24 | July 11, 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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4.97%
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5 Yr Swaps
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5.55%
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12-MAT
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5.01%
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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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5.08%
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10 Yr Swaps
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5.74%
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11th Dist COFI
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4.29%
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6 Month LIBOR
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5.39%
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30 Yr US Treasury
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5.18%
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| | | Transaction Description: | | $6,500,000 Refinance for Single Tenant Bank Branch in San Fernando Valley. GSP has arranged a cash-out loan for this early 70’s vintage 14,000 sq.ft. branch of a major money center bank. The lease is on the extension periods and all extensions run out in 2016. The challenge of the transaction was underwriting the future income of a lease with rental amounts determined by appraiser opinions of market rents (the lease was written in 1971). Borrower rate locked at application before run up in treasuries. Lender did not escrow for insurance as it is tenant responsibility. |
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| | | Hot Money | Nationwide fund looking for the following: mezzanine, participating debt, high leverage bridge, distressed note acquisition, sale lease-back, joint venture, credit enhancements and partner take-outs. Lender recently provided equity for a bankruptcy auction for lease rights for 83 closed store locations. Looking for yields of 11-25% depending on risk.
| | | Interest Rate/CMBS Update | The 10 Year sits at 5.07% today after a roller coaster week, fluctuating between 5.00% and 5.20%. Pushing/Pulling: bonds rally on indications of a slowing economy such as retailers slow earnings report and continued malaise in the housing market. These two factors combined as Home Depot reported low earnings based on less housing activity. Bonds sell on inflationary fears stoked by reports that oil may hit $80 a barrel due to low stocks, huge demand and potential hurricanes in the refining belt in the southeast. CMBS: More “Good News/Bad News”. The bonds are firming up, not much widening. However, the 10 Year Swap has gapped out to +67.5, so spreads are widening accordingly. All in 10 year spreads range from T + 110 to 135+ depending on asset quality. Stay tuned… (David R. Pascale, Jr.) | | | 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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