GSPartners
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Volume XVI | No. 2 | January 16, 2008
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KEY RATE INDICES
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Prime Rate
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7.25%
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1 Month LIBOR
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4.02%
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5 Yr US Treasury
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2.95%
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5 Yr Swaps
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3.60%
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12-MAT
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4.52%
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3 Month LIBOR
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4.00%
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10 Yr US Treasury
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3.67%
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10 Yr Swaps
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4.26%
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11th Dist COFI
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4.17%
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6 Month LIBOR
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3.83%
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30 Yr US Treasury
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4.27%
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| | | Transaction Description: | | $6,000,000 (81% LTC, Non-Recourse) for the Acquisition and Redevelopment of an Historic Apartment Complex in the Hillcrest Neighborhood of San Diego, CA. GSP secured bridge financing for a very experienced property developer for the acquisition and renovation of a 58-unit apartment complex totaling 29,190 sq. ft. in San Diego, CA. |
Challenge: Challenges included the property age, lack of parking, and small transaction size. More broadly, this financing took place in the midst of the market downturn, when many lenders could not provide certainty of execution. Specifically, upheaval in the securitized bridge financing market severely limited liquidity for this type of financing. |
Solution: The quality of the sponsorship, as well as a thorough business plan, gave lenders comfort with the age and limited parking of the property. GSP identified a lender with an extremely competitive quote, in spite of the relatively small transaction size, who was willing to maintain the loan in their portfolio, and who actually funded more proceeds than the borrower originally applied for. |
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| | | | Mezz Lender Providing up to 95% Loan to Cost in Western United States. This mezz lender structures their debt with a non-participating, capped return. Lender is funding mostly development and reposition transactions. Also doing work-outs. Most commercial and residential property types. Looking for strong borrowers. | | Transaction Size: $1-15M | | Rate: IRR mid-high 20s | | Loan Term: 6-24 mos | | Max LTC: 95% | | Recourse | | Prepayment: 6 mo minimum term | | Fees: 3 pts in | | Geography: Western States |
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| | | GSP Welcomes Two New Brokers to Our Team |
Mr. Lawrence joins George Smith Partners after spending the past four years as a Principal with OlympiaWest Commercial Capital. While with OlympiaWest he was the leading loan originator, closing a wide array of major retail, office and hotel development transactions across the country. Mr. Lawrence attended SUNY Buffalo, Cal Poly Pomona, and Strategic Negotiating classes offered at Harvard University.
Prior to joining George Smith Partners, Mr. Schillinger originated commercial transactions in the downtown Los Angeles office of Marcus & Millichap Capital Corporation, the in-house financing arm of Marcus and Millichap. Mr. Schillinger previously served as Vice President of Marketing and Sales at MSG Mortgage and originated residential and commercial transactions at Chase Manhattan Mortgage Corporation. Mr. Schillinger graduated from the University of California, Santa Barbara in 2004 with a degree in Business Economics and minor studies in Mathematics and Political Science.
| | | Speakers Corner | 1/24/08 Steve Bram, GSP Principal/Senior Director will participate in a panel discussion at the Central City Association’s Annual Luncheon on January 24, 2008. The theme will be “The Southern California Housing Market - How will Downtown Los Angeles Fare Compared to the Region in 2008?” Over 200 people are expected to attend.
Moderator:
Michael Gottlieb, Editor, California Real Estate Journal
Panel:
James Atkins, Principal, Williams & Dame
Deborah Beveridge, Senior Vice President, East West Bank
Steve Bram, Principal/Senior Director, George Smith Partners
Mark Tarczynski, Senior Vice President, Urban Redevelopment Group, CB Richard Ellis
Date: Thursday, January 24, 2008
Time: 11:30am -1:45pm
Place: Downtown Los Angeles Marriott - 333 S Figueroa St. | | | Join Us As We Reach New Heights | At George Smith Partners, we are looking to expand our team of top-notch mortgage brokers – originators and assistants. We offer highly competitive compensation and an excellent environment in which to work, learn and be supported. GSP is committed to providing our employees with cutting edge market information, resources for identifying the best capital sources for each transaction, training opportunities and peer support whenever it is needed.
We invite you to consider a career with George Smith Partners. Please direct confidential inquiries to Todd August, Chief Operating Officer, at (310) 557-8336, Ext. 125.
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©2008 George Smith Partners, Inc. FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
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