GSPartners
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Volume XV | No. 37 | October 4, 2007
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KEY RATE INDICES
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Prime Rate
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7.75%
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1 Month LIBOR
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5.12%
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5 Yr US Treasury
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4.23%
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5 Yr Swaps
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4.89%
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12-MAT
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4.86%
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3 Month LIBOR
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5.24%
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10 Yr US Treasury
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4.54%
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10 Yr Swaps
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5.17%
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11th Dist COFI
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4.36%
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6 Month LIBOR
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5.17%
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30 Yr US Treasury
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4.78%
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| | | Transaction Description: | | $10,700,000 (68% LTV, Non-Recourse) for the Refinance of a Flex-Industrial Complex in Baldwin Park, CA. GSP secured financing for a very experienced property owner/developer for the refinance of a flex-industrial complex totaling 125,865 SF in Baldwin Park, CA. |
Challenge: The borrower brought their financing request to GSP with slightly over one month remaining before the existing loan on the property matured, giving an unusually short timeframe to close this permanent financing request, particularly given current market conditions. Additionally, the borrower sought significant cash out as the building value had appreciated well over the size of their existing debt. |
Solution: GSP identified a lender who offered not only the most competitive rate and proceeds, but was able to close in the requisite timeframe. GSP also worked closely with the lender to identify third party engineers to complete their reports in under two weeks. Total time from application signing to close was exactly 1 month. GSP secured a loan amount which resulted in significant cash back to the borrower after the repayment of their old financing. |
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| | | Transaction Description: | | $3,500,000 Permanent Loan for a Business Park in Austin, TX |
Challenge:
1. Almost half of the tenants had leases expiring in the next two years.
2. Approximately 50 small tenants occupied the buildings, making it extremely difficult to obtain tenant estoppels.
3. Borrower wanted flexibility to sell the property in the near future.
4. There was an existing loan which required defeasance.
5. The Phase I report revealed environmental issues which had to be resolved. |
Solution:
1. GSP negotiated two years of recourse, which will be released upon the renewal of most of the expiring leases.
2. GSP identified a lender which would not require tenant estoppels.
3. GSP sourced a lender which had flexible prepayment provisions while permitting the loan to be assumed by a buyer.
4. GSP coordinated the defeasance of the existing loan.
5. GSP worked with the environmental consultant to draft a response to remove the property from the USEPA RCRA Generator database. |
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| | | | Non-recourse Portfolio Lender Financing Single Tenant Credit Properties, Including Auto-related, Nationwide. 5 or 7 year fixed rate loans roll into floating rate for up to 10 year loan term. 15/15 or 20/20 terms also available. Three years of interest only payments available for low leverage loans (60% or less). Step-down prepayment penalties can be bought out by paying a 1% fee at origination. Prepayment penalties waived at refinance with lender. Lender buys environmental insurance, so no Phase I required on low-risk properties. Lender also finances multi-tenant projects in the Western US. | | Transaction Size: $500K – $7M | | Rate: 5 yr fixed: 6.5%; 7 yr fixed: 6.7% | | Loan Term: 5, 7 yrs | | Amort: up to 30 yrs | | Max LTV: Single-tenant: 70%; Multi-tenant: 75% | | Min DCR: Single-tenant: 1.25; Multi-tenant: 1.20 | | Non-recourse | | Prepayment: 5 yr: 3-3-2-2; 7 yr: 3-3-2-2-2 | | Geography: Single tenant: Nationwide; Multi-tenant: CA, AZ, TX, Las Vegas |
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| | | Speakers Corner | October 11, 2007
Gary M. Tenzer, GSP Senior Director/Principal, will be Moderator of a panel discussion at the Apartments 2007 Conference in Los Angeles. The General Session panel is titled “Getting Deals Done in the Suddenly Turbulent Debt & Equity Capital Markets.” Panelists include:
-- Jeff Day, Managing Director, Deutsche Bank
-- Michael Klein, Pacific / Western Regional Director, Imperial Capital Bank
October 24, 2007
Gary E. Mozer, GSP Managing Director/Principal, will be speaker/moderator for the CRCGreen Council at the ULI Fall Meeting in Las Vegas, NV. The session title is “Capital Markets – Debt Market in Disarray!”
October 30, 2007
-- Stuart Gabriel, Director, the Ziman Center for Real Estate
-- Carol Schatz, Central City Association of Los Angeles
-- Jay Newman, COO, the Athens Group; Project Director, the Montage Hotel project on Beverly
-- Clyde Stauff, Senior Vice President, Colliers International
-- Moderated by: Loryn Dunn Arkow, Partner, Cox, Castle & Nicholson LLP
| | | 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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