GSPartners
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Volume XVII | No. 9 | April 30, 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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0.41%
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5 Yr US Treasury
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2.02%
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5 Yr Swaps
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2.46%
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12-MAT
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1.44%
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3 Month LIBOR
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1.02%
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10 Yr US Treasury
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3.13%
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10 Yr Swaps
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3.08%
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11th Dist COFI
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2.00%
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6 Month LIBOR
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1.56%
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30 Yr US Treasury
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4.05%
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| | | Commercial Lender Actively Lending on Condominium and Apartment Construction Projects. GSP has identified an active commercial bank providing financing for development, re-development and value-add transactions of small to mid-sized condominium and apartment projects located in major metropolitan areas nationwide. The lender's programs also include short and medium term financing, such as acquisition, bridge and mini-perm loans. | | Transaction Size: $2M - $7M | | Rate: Floating over prime (subject to floor) | | Loan Term: 18 to 24 months | | Amort: Interest Only | | Max LTC: 65% | | Recourse | | Property Types: All major asset classes (focus on apartment/condominium) | | Fees: 1% | | Geography: Major MSAs |
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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: | | Refinance of 6 Unit Multi-Family property in Gardena, California. GSP arranged the cash-out refinance of a 6 unit multi-family property in Gardena. |
Challenge: The borrower requested the lowest interest rate and max leverage in order to maximize the cash-out on the transaction. Additionally, the property was located adjacent to train tracks and was the nicest building in its neighborhood, hindering the appraisal valuation. |
Solution: GSP secured a very aggressive interest rate and maximum cash-out proceeds. Also, GSP was able to mitigate the lender's valuation and train track concerns by researching the train schedules and confirming the low frequency of non-passenger rail traffic in the area. GSP was also involved in the process of identifying comparable properties and justifiable market rents. |
| | Rate: 5.86% | | Term: 7 years | | Amort: 30 years | | LTV: 65% | | DCR: 1.20 | | Prepayment: Yield Maintenance | | Non-recourse | | Lender Fee: Par | | Key Players: Marc Schillinger |
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| | | Market Update | Focus on the Fed (and Treasury): Now that the Fed has lowered the Fed Funds rate to virtually zero where it will remain for a while, the focus is on other Fed “levers” and the tone of the Fed statement. This week the Fed announcement contained a hint of optimism and no change in the purchasing of treasuries, MBS and other securities (the lever known as “quantitative easing”). This has led to a rally in equities and macro credit market easing (i.e. bank to bank and corporate paper rates). Meanwhile, the Treasury is auctioning off a record amount of Treasuries this week and floating the idea of new issues (among them: 4 year T, 20 year T and a 50 year T!). Treasury yields are rising from their lows (10 year T now above 3%) and the huge supply raises fears of a “Treasury bubble” set to pop if/when the economy recovers. This will send interest rates shooting up. Would we then hope that major US trading partners would buy Treasuries to aid the US consumer in buying foreign goods? Meanwhile the Treasury and the Fed are trying to avoid deflation now and inflation later, plus watching potential “wild cards” like Swine Flue... Stay tuned…(David R. Pascale, Jr.). | | | Litigation Consulting | George Smith Partners is expanding its litigation consulting and expert witness practice.
Sr. Principal, Gary M. Tenzer, has served as a litigation consultant and expert witness in over 300 matters; presently he has been retained by the debtor in one of the largest commercial property Chapter 11 bankruptcies in US history as its financing expert. His current clients also include Simon Properties, Lennar Corp, and Hard Rock Enterprises.
Managing Principal, David Rifkind testified in Federal Bankruptcy Court as an expert on interest rates and valuation on behalf of a California based bank. Last month, Mr. Rifkind testified as an expert before the Bankruptcy Court on behalf of a lender as an expert on interest rates and professional practices in arranging complex structured real estate financing”. GSP has an active consulting and litigation support group. For more information, please contact Gary Tenzer (gtenzer@gspartners.com) or David Rifkind (drifkind@gspartners.com). | | | Single Family Financing - Synergy | GSP is pleased to announce that we have established a relationship with a well recognized and established residential mortgage lender providing a full range of residential mortgage products. A lender representative is located in our offices. Please contact Todd August or your GSP representative if you need assistance with your residential mortgage. | | | Speakers Corner | GSP Principal and Senior Director Steve Bram will be the featured speaker at the Cornell Club of Los Angeles' Quarterly Business Networking Breakfast. Mr. Bram will lead a discussion about overcoming the challenging times in which we find ourselves. For more information regarding this event please click on the following link - Event Information.
GSP Principal and Managing Director David Rifkind was a guest lecturer on Capital Markets for MBA students taking the Entrepreneurial Real Estate Development course, part of the Ziman Center for Real Estate at the UCLA Anderson School. Mr. Rifkind spoke as part of a panel of experts on the current state of project financing. | | | Come Grow With Us |
George Smith Partners is selectively seeking several seasoned real estate professionals with work-out and restructuring experience to work in GSP's Loan Work-Out / Restructuring Group. GSP offers highly competitive compensation and an excellent environment in which to work.
We invite you to consider a career with George Smith Partners. Please direct confidential inquiries to Todd August, Chief Operating Officer, at (310) 867-2995.
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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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