GSPartners
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Volume XVII | No. 5 | April 1, 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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0.50%
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5 Yr US Treasury
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1.65%
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5 Yr Swaps
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2.22%
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12-MAT
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1.51%
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3 Month LIBOR
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1.18%
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10 Yr US Treasury
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2.66%
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10 Yr Swaps
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2.88%
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11th Dist COFI
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2.45%
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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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3.50%
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| | | West Coast private equity fund actively looking to put out capital. GSP has identified an active West Coast private equity fund providing preferred equity, B notes, bridge loans and mezzanine debt for projects located in major metropolitan areas in the western United States. The program's main purpose / focus is to fill the gap between borrower’s equity and available first mortgage proceeds (60%-80% in capital stack). | | Transaction Size: $1M - $8M | | Rate: Mid to high teens IRR | | Loan Term: 3 to 6 years | | Max LTV: 80% | | Recourse | | Property Types: Industrial, retail, office and multi-family | | Geography: Western US |
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| | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, asset sales or advisory services please contact your GSP representative or Todd August, Chief Operating Officer, at (310) 867-2995 or taugust@gspartners.com. | | | | | | | Transaction Description: | | Acquisition of an 14 Unit Multi-Family Property in Los Angeles, California. GSP arranged the financing for the exchange acquisition of an 14 unit multi-family property located in Los Angeles. |
Challenge: 1031 exchange buyer was in contract to purchase the asset and non-contingent on his offer. The borrower had an existing application brokered by a residential loan officer that was denied four days before the scheduled close of escrow. Traditional lenders also had an issue with the existing occupancy of the asset, since most lenders now require 90% occupancy for the trailing 90 days - the asset was 60% vacant at the close. |
Solution: Private money lender was able to go from application to loan documents in 24 hours with minimal due diligence. Escrow closed in four business days and the borrower was able to satisfy his exchange and avoid non-performance on purchase contact. A take-out loan is currently in process with GSP. |
| | Rate: 9.9% | | Term: 1 year | | Amort: Interest Only | | LTV: 50% | | Prepayment: None | | Recourse | | Key Players: Marc Schillinger |
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| | | Market Update | The 1st Quarter ended with overall guarded optimism across the markets. The next round of corporate earnings reports are going to be watched closely after an “off the cliff” 4th quarter 2008. Corporate earnings, especially among the all-important financials, have become a critical “confidence/fear” barometer for the credit markets. Treasuries: the Fed’s recent commitment to buy $300 billion in Treasuries has created a new trading metric as in “how much did they buy this week?” This week, the Fed only bought $2.5 billion instead of the $5 billion expected which tempered the gains somewhat. Yields are still historically low. Overnight LIBOR spiked slightly due to end of quarter dynamics, it should drop in early April. The “Ted Spread” (difference between Treasury and like termed LIBOR) has been dipping below 1.00%, a very good sign as this closely watched credit index was over 5% in September 2008… Stay tuned… (David R. Pascale, Jr.) | | | In the Press | GSP Principal/Managing Director, Steve Bram's article entitled "Defining The New Multifamily Lending" was published in the March/April edition of Commercial Mortgage Insight. The article discusses the nuances and trends of multi-family lending in the current market environment. To read the article, please click on the following link (Commercial Mortgage Insight).
Steven Orchard (Senior Vice President) and Josh Roseman's (Vice President) article outlining the current commercial real estate market conditions influencing distressed real estate work-outs was recently featured on GlobeSt.com on March 27th, 2009. To read the article, please click on the following link (Globe St.). | | | 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 Liner Grode Stein Yankelevitz Sunshine Regenstreif & Taylor, LLP on Thursday, April 2, 2009. 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, Real Estate Litigation and Bankruptcy. 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) 867-2901 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) 867-2901. |
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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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