GSPartners
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Volume XVI | No. 16 | May 29, 2008
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KEY RATE INDICES
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Prime Rate
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5.00%
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1 Month LIBOR
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2.46%
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5 Yr US Treasury
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3.47%
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5 Yr Swaps
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4.33%
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12-MAT
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3.53%
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3 Month LIBOR
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2.68%
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10 Yr US Treasury
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4.11%
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10 Yr Swaps
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4.78%
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11th Dist COFI
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3.28%
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6 Month LIBOR
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2.86%
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30 Yr US Treasury
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4.78%
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| | | Transaction Description: | | $4,800,000 75% LTV, Fixed Rate, Permanent Financing for an Owner Occupied Industrial Property in Montebello, CA. GSP arranged acquisition financing for an owner-user industrial property located in Montebello, CA. The property sits on three acres of land with approximately 66,400 sq. ft. of improvements which are primarily used to manufacture and distribute olive oil and for storage for state-of-the-art equipment that produces plastic recyclable bottles. The tenant is a newly formed joint venture between three successfully established companies. They intend to become a major supplier to the retail food industries in the Western United States by quickly becoming a purveyor to the major retail chains, such as Ralph’s, Vons, Target and 99¢ Stores, for their private label programs. The buyer/property owner entered into a new 10 year lease on a pocket-to-pocket basis. |
Challenge: Foreign guarantors/sponsors structured in 6 different entities. |
Solution: Due to sponsors’ strong financial statements, lender got comfortable and funded the loan. |
| | Rate: 5.9% | | Term: 10 yrs | | Amort: 25 yrs | | LTV: 75% | | DCR: 1.00 | | Prepayment: 5,4,3,2,1 then open | | Recourse | | Lender Fee: 0.50% |
Key Players: Andrew Levant, Gilda Rivera
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| | | | Hotel Lending Program Non-recourse, Fixed Rate. Lender prefers A&B assets. Will finance assets in secondary and tertiary locations. Lender can underwrite 1.20 I/O DCR on acquisitions with good upside story, strong sponsorhip and management. Comfortable with unflagged hotels. | | Transaction Size: $5-75M | | Rate: 10 yr T + 325 to 350 | | Loan Term: 5, 7, 10 yrs | | Amort: 10 yr I/O | | Min DCR: 1.35 | | Non-recourse | | Property Types: Flagged and limited service hotels | | Prepayment: Defeasance | | Fees: Par | | Geography: Nationwide |
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| | | Interest Rate/CMBS Update | Treasury rates shot up this week above 4.00% (on the 10 Year) as Fed Governors made it clear that they are done cutting rates (barring another meltdown scenario) and are now concerned about inflation. The 10 Year T is at 4.12% as of Thursday morning. The “good news” is that investors are more comfortable with debt/risk instruments such as corporate bonds. This should tighten spreads. There is some compression in agency and CMBS spreads. “Almost Back” is the word from some CMBS originators as all-in coupons for 10 year term, 75% leverage hovers in the 7.00-7.50% range. Almost. Stay tuned… (David R. Pascale, Jr.)
| | | Speakers Corner | June 3, 2008
Panelists include:
Registration Fee:
$695 for the first person
$495 for each additional person (from the same company)
For registration information contact: Brad White (212)-981-9940
* * *
On May 7, 2008 GSP’s Assistant Vice President Omer Ben-Zur gave a presentation to the real estate group at the law firm of Ballard Spahr Andrews & Ingersoll, LLP in Los Angeles. Mr. Ben-Zur covered the different loan and lender types, and then reviewed permanent loan underwriting through a case study. Additionally, Mr. Ben-Zur spoke about the credit market environment, explaining the background for the credit crisis, the current market environment and the possible outlook for the next few months. | | | Come Grow With Us | George Smith Partners is expanding its 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 provides its 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 Stella Debibi, Director of Business Development and Recruitment, at (310) 557-8336, Ext. 103.
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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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