| |
|
|
| Volume XVI | No. 35 | December 31, 2008 |
|
|
|
|
|
|
|
|
| KEY RATE INDICES |
| Prime Rate |
|
1 Month LIBOR |
|
5 Yr US Treasury |
|
5 Yr Swaps |
|
| 12-MAT |
|
3 Month LIBOR |
|
10 Yr US Treasury |
|
10 Yr Swaps |
|
| 11th Dist COFI |
|
6 Month LIBOR |
|
30 Yr US Treasury |
|
|
|
|
| |
|
|
|
|
|
|
| Transaction Description: |
| $7.2M and $3.5M Cash Out Refinance of Two Apartment Buildings in Los Angeles. GSP secured permanent financing for an 86 unit apartment building and a 34 unit apartment building in Los Angeles. |
Challenge: 1). Ownership restructuring: Due to a divorce proceeding, the properties were being reallocated and the lender required a final divorce settlement as a closing condition. 2). Timing: Current loans were past due. 3). Rate-Lock: Both loans rate-locked for 90 days. In the middle of the rate-lock period, the lender discontinued this loan product and significantly increased rates. 4). Closing Conditions: The loans contained several post closing conditions that would trigger a large default interest if not completed to bank’s satisfaction. |
Solution: 1). Ownership restructuring: GSP worked with the lender to remove the final divorce settlement requirement as a closing condition and negotiated post closing language that satisfied the lender’s requirement while respecting the borrower’s privacy. 2). Timing: GSP worked with the servicer to delay default proceedings and secure the extensions necessary to get the refinance loans closed. GSP worked with attorneys and lender’s senior management to iron out business terms and logistics to close one day after receipt of loan documents. 3). Rate-Lock: Lender honored the original locked rate and closed on rate-lock expiration date. 4). Closing Conditions: GSP negotiated several of the conditions be waived or the language modified so it would be acceptable to the borrower. |
|
|
Loan A:
Term: 10 years
Amortization: 30 years
LTV: 59%
DCR: 1.15
Lender Fee: Par
Prepayment: 4-3-2-1
Recourse: 25%
Loan B:
Rate: 5.75%
Term: 10 years
Amortization: 30 years
LTV: 60%
DCR: 1.35
Lender Fee: Par
Prepayment: 4-3-2-1
Recourse: None
|
|
|
|
|
| Federal Reserve Primer |
The United States Federal Reserve System turns 95 on December 23 rd 2008. It has never been more active and visible - marching out a parade of stunningly ambitious initiatives in the last few months. Yet illiquidity persists. How does the Federal Reserve System work, and does this institution have the power to restore the financial system it was chartered to sustain?
|
|
|
|
| Small regional California bank is still lending aggressively on owner-occupied, office, retail and industrial properties. This lender also provides financing on special purpose assets (such as churches and mobile home parks) and is still funding construction and acquisition/rehab loans on a limited basis. Please contact a GSP broker for more information on the bank's programs. |
| Transaction Size: $500,000 - $6,000,000 |
| Rate: 6.5% - 8.0% |
| Loan Term: Up to 5 years fixed |
| Amort: 30 years |
| Max LTV: 75% |
| Max LTC: 80% |
| Min DCR: 1.20 |
| Recourse |
| Property Types: Income producing |
| Prepayment: Step-down |
| Fees: Par - 1% |
| Geography: California |
|
|
|
| GSP Private Briefing Series |
David Rifkind, GSP Principal/Managing Director, and Gary M. Tenzer, GSP Principal/Senior Director, are presenting a session in their Private Briefing Series to Latham & Watkins, LLP on Thursday, December 18, 2008. This program is designed to inform attorneys at a high level and to address the state of the US Commercial Real Estate Capital Markets as seen from real estate finance industry insiders. This presentation is geared toward attorneys whose practice is in Commercial Real Estate and Real Estate Litigation. This program is qualified for MCLE credits. If you are interested in having Mr. Rifkind and Mr. Tenzer present to your firm, please contact Stella Debibi at 310-557-8336 Ext. 103 or sdebibi@gspartners.com.
|
|
| 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.
|
|
|
|
| ©2009 George Smith Partners, Inc. FINfacts is an ePublication of George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved. |
|
| |
|
|
|
|
