GSPartners
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Volume XVII | No. 25 | August 26, 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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0.26%
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5 Yr US Treasury
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2.46%
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5 Yr Swaps
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2.92%
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12-MAT
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0.90%
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3 Month LIBOR
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0.38%
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10 Yr US Treasury
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3.45%
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10 Yr Swaps
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3.76%
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11th Dist COFI
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1.60%
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6 Month LIBOR
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0.78%
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30 Yr US Treasury
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4.21%
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| | | Transaction Description: | | $58,330,000 Refinance of Multi-Family Apartment Complex in Santa Clarita. GSP arranged the financing for a 563 unit garden style apartment complex and coordinated with a consultant for the defeasance of the outstanding loan. |
Challenge: With fundamentals in the real estate markets trending down, lenders are consistently becoming more conservative. GSP had to push the lender to issue commitments before the lender removed the interest only feature in their program and lowered their leverage levels. In addition, GSP was given a short timeframe to fund the loan with defeasance provisions for the existing loan that included required review by the rating agencies. |
Solution: GSP was able to identify the loan program that offered the best pricing and highest proceeds, while navigating the borrower through the complexities of the loan program. In addition, GSP maintained a constant line of communication between consultants and counsel to orchestrate defeasance in the narrow timeframe provided. |
| | Rate: 5.80% | | Term: 10 years | | Amort: 30 years (w/ 2 years Interest Only) | | LTV: 70% | | DCR: 1.30 | | Prepayment: Defeasance | | Non-recourse | | Key Players: Gary M. Tenzer, Nick Silbergeld |
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| | | | “Nearly Bankable” Senior Loans and Note Purchase Financing (both distressed and performing). GSP has a strong relationship with a national lender specializing in “nearly bankable” senior loans. The lender will finance situations that conventional lenders won’t touch in today’s market: capital market bridge loans for maturing CMBS, assets in lease-up with above market vacancy, construction loan takeouts, purchase of commercial REO property, and cash outs. The lender also specializes in financing note purchases, including both performing and distressed loans. Rates and fees are a notch higher than conventional lending sources, but much less expensive than hard money sources. The lender will finance the following asset classes: office, industrial, retail, multi-family, self-storage, and healthcare. Single asset loans range from $1M - $10M. Larger financing amounts available for acquisition of loan pools with multiple assets. | | Transaction Size: $1M - $10M (prefer $2M - $7M) | | Rate: Varies by deal | | Loan Term: 6 - 24 months | | Max LTV: 75% Max (typically 65%) | | Recourse Negotiable | | Property Types: All major asset classes | | Prepayment: None (after short lockout) | | Fees: Varies by deal | | Geography: Nationwide (primarily focused on western states) |
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| | | Competitive Non-Recourse, Fixed-Rate Loan Program for Large Deals Nationwide. National lender is currently offering a competitive fixed-rate loan program for fully-stabilized, income-producing properties located in major metropolitan areas in the United States. The program is currently focused on anchored retail shopping centers, warehouse/distribution buildings, multi-family apartments and hotels (on a very selective basis), and provides borrowers with a good, non-recourse alternative to life company money. The lender is currently calibrating leverage by underwriting an asset's NOI to a 12% debt yield, with a maximum LTV ratio not to exceed 65%. Rate: Approximately 8.5%; Loan Term: 5 years fixed; Amort: 30 years; Prepayment: Open after 24 months (defeasance); Fees: 1.00%; Non-recourse. | | | Pool of Private Money to Restructure Existing Loans. George Smith Partners has amassed a pool of private money to help our clients restructure existing loans on commercial and multi family properties nationwide. The emerging scenario is a borrower in default (or potential default) on a loan and the lender either offers the loan for sale or offers a discounted payoff directly to the borrower. Our private sources are willing to finance up to 90% of the discounted loan amount (requiring new sponsor equity of approximately 10%). The new loan will pay off the existing lender at the agreed upon discount with a new 1st mortgage on the property. Transaction Size: $3M - $100M; Rate: Low to mid teens; Loan Term: Up to 5 years; Property Types: All major asset classes; Geography: Nationwide; Non-recourse. | | | 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. | | | Speakers Corner | August 27 - GSP Principal and Senior Director, Gary M. Tenzer will be moderating a panel (Workouts and Restructures - the Good the Bad and the Ugly) at the 7th Annual RealShare Orange County conference. For more information on the panel/conference, please click on the following link: RealShare Orange County. | | | 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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