GSPartners
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Volume XV | No. 26 | July 25, 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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4.78%
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5 Yr Swaps
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5.42%
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12-MAT
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5.00%
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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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4.90%
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10 Yr Swaps
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5.62%
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11th Dist COFI
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4.29%
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6 Month LIBOR
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5.37%
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30 Yr US Treasury
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5.03%
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| | | Transaction Description: | | $17,287,000 Construction Loan for a 246,089 Sq. Ft. Light Industrial Facility in Pomona, CA. GSP arranged non-recourse financing for the construction of a for-sale four building light industrial property in the San Gabriel Valley. Upon completion, the property will host two industrial flex buildings, each measuring 9,000 sq. ft with 22 ft. clear heights. The building comprise 2,000 sq. ft. of office / mezzanine space built out and ESFR sprinkler systems. The two buildings are best suited for use as industrial warehouse, distribution or light manufacturing measuring between 95,000-130,000 sq. ft. with 30 ft. clear heights, 5,000 sq. ft. of office / mezzanine space built out, dock-high loading and ESFR sprinkler systems. There is significant interest from potential owner/occupant buyers. |
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| | | Transaction Description: | | $9,044,000 (85% LTC) Construction Loan for 29-unit Condominium Complex in Panorama City, CA. GSP arranged financing for the construction of a 29-unit, 23,941 sq. ft. condominium complex on Ventura Canyon Avenue in Panorama City, California. This development is the third phase of two similar condominium projects in the surrounding neighborhood. |
Challenge: The downturn in the condominium market during the planning stages of the project. |
Solution: The developer was able to make the condominium project attractive to potential buyers by keeping unit prices at affordable work-force levels with unit prices averaging approximately $425,000. |
| | Rate: 1 Mo LIBOR + 2.25% | | Term: 18 Mos + 6 mo option to extend | | LTC: 85% | | Recourse | | Lender Fee: 0.75% |
Key Players: Steven Orchard, Sean Lurry
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| | | New Nationwide Small Balance ($10,000,000 and under) Fixed Rate Program. Streamlined docs, No Phase I or Engineering, No Legal Fees, Flexible Prepay, Total Costs of $2,500-$5,000, 35-45 day closings. Portfolio lender doesn’t require tax returns, rental agreements. Needs certified rent roll. Documentation of reserves (6 mos). Can be very flexible. Does not impound for TI’s, leasing commissions, taxes, insurance. Can do non-recourse.
Property Types: Multifamily, retail, industrial, office, self storage, mobile home parks, single tenant, owner user, restaurant franchise.
| | Transaction Size: $1-10M | | Rate: T + 160-200 | | Loan Term: 5, 7, 10 yrs | | Amort: Multifamily – up to 40 yrs; Comm - 5 yr IO, 30 yrs | | Max LTV: Multifamily - 80%; Comm - 75% | | Min DCR: Multifamily - 1.15; Comm - 1.20 | | Recourse Negotiable | | Prepayment: declining penalty. 10 yr has 10 yr declining. Can reduce in half for 1/8 or 1/4 | | Geography: Nationwide |
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| | | Interest Rate/CMBS Update | Good News/Bad News......
Treasuries (Good News): The 10 Year T rallied to 4.91% today (Wednesday) as investors sold stocks and headed to the “safe haven” of bonds. The housing market and subprime worries are again weighing on investors. CMBS (Bad News): It’s becoming a familiar refrain lately: a big pool goes to market, investors are averse to buying any type of mortgage bonds, sales of all tranches go poorly and spreads go up again. That happened again today, the latest we have heard: Break even is “about 130”, new retail or apartment 10 year transactions pricing in the 145-150 range, originators are asking “where is the bottom?” 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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