GSPartners
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Volume XVII | No. 2 | March 11, 2009
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KEY RATE INDICES
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Prime Rate
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3.25%
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1 Month LIBOR
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0.56%
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5 Yr US Treasury
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2.03%
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5 Yr Swaps
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2.67%
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12-MAT
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1.51%
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3 Month LIBOR
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1.33%
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10 Yr US Treasury
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3.02%
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10 Yr Swaps
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3.23%
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11th Dist COFI
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2.46%
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6 Month LIBOR
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1.80%
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30 Yr US Treasury
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3.75%
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| | Headline | | | | | Transaction Description: | | $15,000,000 Construction/Perm for $21,000,000 Retrofit to a 480 Unit condo project in Los Angeles. GSP successfully placed a $15,000,000 loan for an HOA of a well-known condominium complex located on the Westside of Los Angeles. Andrew Levant was able to negotiate an 18 month construction term (at Prime + 0.00% with a 6.00% floor), which rolls into a 15 year amortization permanent loan priced over the 5 year CMT (Constant Maturities Index) + 4.25%. |
Challenge: Finding a lender willing to do HOA construction financing during the residential housing meltdown. |
Solution: GSP scoured the market to find a capital source willing to lend on the HOA / Construction project. |
| | Rate: Construction Loan - Prime + 0.00% (6.00% Floor) Permanent Loan - 5 year CMT + 4.25% | | Term: 5 years | | Amort: 15 years | | LTC: 71% | | Recourse | | Lender Fee: 0.50% Origination Fee and 2.00% Exit Fee | | Key Players: Andrew Levant |
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| | | Transaction Description: | | $5,000,000 Permanent Financing and Discounted Payoff for a Single Tenant Owner Occupied Office Building in Las Vegas, NV GSP successfully negotiated a $2.2 million discount and also arranged permanent financing for a stabilized office building in a newly built (but only 40% occupied) office park. |
Challenge: The Sponsor originally acquired the property as a shell in July 2007 using a CMBS lender. The CMBS lender held the loan on book while TI’s were finished and occupancy was achieved. However, the securitization market fell out and the CMBS lender was unable to sell off the loan. The building value also declined 25% in a one year period as rents dropped and vacancy skyrocketed in the area. The Sponsor- who has a declining business and occupies over 80% of the space- struggled to maintain the debt service on the overleveraged property. |
Solution: GSP located a lender that could provide a 3 year loan fixed at a 5.50% rate. Once the new loan was approved, GSP got the original lender to accept a $2.2 million (32%) payoff of the original loan. The Sponsor did not come out of pocket with any additional equity to close the loan. . There were other buyers also looking to buy the note fro the lender at the same time. |
| | Rate: 5.50% | | Term: 3 years | | Amort: 30 years | | LTV: 65% | | Prepayment: Open - no prepayment penalty | | Recourse | | Key Players:
Steve Bram and
Jonathan Lee
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| | | GSP Lender Services and Asset Sales Group Update | GSP Asset Sales Group has been exclusively engaged by a California regional bank to sell a package of $42M of assets. According to GSP Principal David Rifkind, "It is a pleasure to market this portfolio because we have a strong, proactive seller who is selling these assets to take advantage of the opportunity rather than desperation." The portfolio includes coastal commercial and residential properties in Malibu and Laguna Niguel, CA, SFR homes and lots, and industrial land in Las Vegas. Some of the assets are REO and others notes. The seller is offering financing. According to Rifkind, "This is the most sellable group of assets we have seen so far in this cycle. We expect considerable interest from the marketplace." In addition to this portfolio, GSP Asset Sales Group is currently taking bids on a loan secured by 5.29 acres of H-1 zoned land on the Las Vegas Strip (immediately adjacent to the Mandalay Bay Resort. For more information regarding these assets please contact: Craig Hamilton, Max Friedman, David Rifkind or your GSP representative. | | | | Debt and Equity Investor Seeking Special Opportunities. GSP has identified an active capital source for the following types of transactions: 1). Debt and equity financing for corporate divestitures, operational or financial restructuring, recapitalization, etc... 2). Secured debt, bonds, mezzanine and equity financing. 3). Asset-secured DIP financing to debtors in bankruptcy 4). Purchase of performing and non-performing loans. 5). Purchase of participation interest in syndicated loans.
Please contact your GSP representative for more details regarding this capital source. | | Transaction Size: $3,000,000 - $20,000,000 | | Rate: Varies | | Loan Term: 1 to 5 years | | Amort: Customized to fit needs | | Max LTV: Based on appropriate valuation | | Recourse | | Fees: Varies depending on loan structure | | Geography: United States |
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| | | Speakers Corner | GSP Principal and Senior Director Steve Bram is moderating the Jewish Federation Real Estate and Construction Division Breakfast covering Bankruptcy and Workouts: What to Do When Things Go Bad (scheduled for Thursday, March 12th, 2009). For more information on this event please click on the following link - http://www.jewishla.org/REC/REC-411/14148/breakfast.htm.
GSP Principal and Senior Director Gary Tenzer moderated a panel addressing Workouts, Restructures and Bankruptcy at this year's Real Estate 2009 Conference on March 5th at the Bonaventure Hotel in downtown Los Angeles. | | | In the Press | GSP Principal and Co-Managing Director, David Rifkind, was recently featured in dialogue with Bob Howard on Globest.com where he discussed the evolving distressed asset market. To read the article, please click the following link (Globe St. - 03/03/2009).
GSP Senior Vice President Andrew Levant's HOA loan (transaction of the week above) was featured in the February edition of Century City News. To read the article, please click on the following link (Century City News 02/2009). | | | 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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©2009 George Smith Partners, Inc. FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
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