GSPartners
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Volume XVII | No. 16 | June 24, 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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0.31%
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5 Yr US Treasury
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2.70%
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5 Yr Swaps
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3.15%
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12-MAT
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1.21%
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3 Month LIBOR
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0.61%
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10 Yr US Treasury
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3.66%
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10 Yr Swaps
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3.96%
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11th Dist COFI
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1.38%
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6 Month LIBOR
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1.13%
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30 Yr US Treasury
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4.42%
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| | | Foreign Bank Providing Competitive Financing for Stabilized Income Producing Properties - Including Hospitality. GSP has identified a foreign bank currently lending on all major income producing asset classes in California. The bank is actively looking to lend on stabilized properties in larger metropolitan areas of California (i.e. populations centers). The lender is typically seeking a deposit relationship with the borrower and currently pricing their loans to float over prime (with a 6.00% floor and 7.00% ceiling). The bank will also finance stabilized flagged hospitality properties at the same pricing subject to a 1.50 DCR ratio. | | Transaction Size: $2M - $20M | | Rate: Floating over prime | | Loan Term: 5 years | | Amort: 25 years | | Max LTV: 60% | | Min DCR: 1.35 (1.50 on hotels) | | Recourse | | Property Types: All major asset classes and hospitality | | Fees: 1% | | Geography: California |
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| | | Hot Money 06/17/2009 - Local Non-Bank Direct Lender Currently Financing Small Balance Retail, Office, Industrial and Selective Special-Use Properties. GSP has identified a local (California) non-bank direct lender and correspondent actively making loans on a wide variety of asset classes. The lender is willing to look at office and retail assets that have been tougher to get financed recently. Pricing is determined on a deal-by-deal basis, but competitive for the strip malls and small office properties. Currently the lender is offering up to 25 year terms priced from 5.75% - 8.50% varying by deal and asset class. The lender also has an active owner-user program, providing 90% leverage for deals that fit their parameters. | | | Hot Money 06/09/2009 - Large Commercial Bank Providing Excellent Pricing on High Quality Commercial Real Estate Assets. Relationship lender is currently providing excellent financing terms for high quality commercial real estate properties. This balance sheet lender will finance all major asset classes in large metropolitan areas nationwide. The current pricing is a spread over LIBOR with no floor (typically swapped to a fixed rate). Rates are currently pricing in the LIBOR + 3.50 -4.50%. Leverage of up to 65% LTV. This lender is currently focused on originating larger loans ($10M and up) for institutional quality sponsorship and assets. Partial recourse is available on deal-by-deal basis. | | | 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: | | $4,530,000 Senior Loan for Single-Tenant Asset in Southern California. GSP arranged $4,530,000 of senior debt for a single-tenant rental car facility at a major Southern California airport. The two-story, 24,000 SF property, of award winning architectural design, sits on a 2.2 acre site. The borrower purchased the asset, vacated the existing mom & pop tenant, renovated the property and signed a new 20 year lease with a nationally known entity. |
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| | | Pascale's Perspective | by David R. Pascale Jr.
LIBOR: The BBA (British Bankers Association) is expanding the group of banks surveyed that determines the LIBOR rates. Now, any bank that participates in overnight borrowing in the London market will report to the BBA, regardless of whether that bank is domiciled in London. This expansion is intended to bolster confidence in the accuracy of the LIBOR indices. The market reacted with a very small spike in the LIBOR rates last week, but they have rallied back to their historic lows. The European bank system received a huge liquidity injection in the form of a $600+ billion money auction that lowered interbank financing rates. Treasuries: There has been further rallying in treasuries as a large amount of new supply is being well absorbed. The next few months should be interesting as the Treasury has fulfilled about 80% of its fiscal year funding needs and the majority of trading will involve existing supply. Also, the economic reports continue to provide “good and bad” news. Usually the “good” news is actually just “we’ve backed away from the cliff” type of data and the markets are waiting for real signs of recovery. Alphabet Soup: Most everyone agrees that the economy is at a near or long term bottom, the question is what “shape” of recovery are we in for? Is it V, U, W, L or possibly “square root” shaped?... Stay tuned… | | | Speakers Corner | Gary Mozer, Principal and Managing Director of GSP, Steve Orchard and Joshua Roseman recently gave a presentation to a group of US Bank's Los Angeles commercial real estate relationship managers outlining the general state of the commercial real estate capital markets. The presentation focused mainly on the current commercial real estate finance market, covering topics ranging from: real estate fundamentals, asset valuations, who will fill the on-going CMBS debt void, creative loan engineering/structuring, availability of alternative or subsidized sources of capital and a general overview of the commercial real estate lending competitive landscape.
If you are a GSP lending partner or capital provider interested in hosting a similar presentation, please contact Todd August for more information. | | | Come Grow With Us | George Smith Partners is expanding its team of top-notch mortgage brokers/originators. 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 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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