GSPartners
|
|
|
Volume XV | No. 27 | August 1, 2007
|
|
|
| Print PDF |
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
8.25%
|
1 Month LIBOR
|
5.32%
|
5 Yr US Treasury
|
4.58%
|
5 Yr Swaps
|
5.25%
|
|
12-MAT
|
5.01%
|
3 Month LIBOR
|
5.36%
|
10 Yr US Treasury
|
4.74%
|
10 Yr Swaps
|
5.49%
|
|
11th Dist COFI
|
4.29%
|
6 Month LIBOR
|
5.33%
|
30 Yr US Treasury
|
4.90%
|
|
|
|
| | | Transaction Description: | | $13,750,000 Bridge Financing for the Acquisition of a 104 Unit Apartment Complex in LaPuente, CA. GSP arranged financing for the acquisition of a 1960’s built apartment complex consisting of 91,400 net rentable sq. ft. on 5.47 acres. The property is 85% leased and consists of 26 four-plex buildings on 25 separate lots. The 25 lots are fully subdivided, each containing its own legal description and property tax statements. The business plan is to upgrade the property and sell the four-plexes to individual owners and/or investors. The loan includes release provisions for selling the individual four-plexes. |
| | Rate: Greater of (a) 8.00% or (b) 30 Day LIBOR + 2.75% | | Term: 12 mos with one 6 mo extension option | | Amort: Interest Only | | LTC: 82% | | Non-recourse | | Lender Fee: 1% |
Key Players: Steve Bram, Steven Yazdani
|
|
|
| | | | Fixed Rate Lender Funding Hard to Place Transactions. Repair, Lease Rollover Risk—This lender specializes in these transactions. Program features streamlined submission requirements and documentation, prepayment flexibility, virtually no tax escrows, no lockboxes, low lender costs. No Special Purpose Entity required. With the low treasury and fixed rate spreads widening, this is a good solution for certain transactions. | | Transaction Size: $1-15M | | Rate: T + 2.10-2.60% | | Loan Term: 5, 7, 10 yrs | | Amort: 25-30 yrs | | Max LTV: 80% | | Min DCR: 1.20 | | Recourse Negotiable |
|
| | | Interest Rate/CMBS Update | Treasuries: “Flight to Quality” continues. Stock market rallied early today and then went south with investors flocking to safe haven of treasuries. The 10 Year T closed at 4.74%. Debt Market/CMBS: The low Treasury index does not mean low all-in coupons for borrowers by any means. Last week’s “Black Thursday” saw fixed rate CMBS bonds in “free-fall” as break-evens are now at approximately 175-185. Several originators are not quoting, virtually all of them are repricing applications, some are repricing rate locked/committed transactions by invoking the MAC (Material Adverse Change) clauses. One originator indicated the only way to “hold spread” is to rate lock at application and then close quickly. The entire debt market was rocked when $12 billion worth of corporate debt tied to the Chrysler Motors buyout found no buyers. This week: some hopeful signs that some life company and cash buyers are stepping up as bond spreads reach record levels for this decade. As one trader remarked, “The flippers and quick sellers have exited the market…and buyers are worried that the bond they buy today may be cheaper next week.” 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.
|
|
|
©2007 George Smith Partners, Inc. FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
