GSPartners
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Volume XVII | No. 26 | September 2, 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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2.28%
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5 Yr Swaps
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2.72%
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12-MAT
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0.90%
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3 Month LIBOR
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0.33%
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10 Yr US Treasury
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3.32%
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10 Yr Swaps
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3.60%
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11th Dist COFI
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1.59%
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6 Month LIBOR
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0.73%
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30 Yr US Treasury
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4.14%
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| | | Transaction Description: | | $10,687,000 Refinance of Multi-Family Apartment Complex in Los Angeles, CA. GSP arranged the financing for a 128 unit apartment complex and coordinated with a consultant for the defeasance of the outstanding loan. GSP worked extensively with the Lender, Defeasance Consultant, and Counsel to coordinate the funding of the loan and defeasance in the required timeframe. |
| | Rate: 5.81% | | Term: 10 years | | Amort: 30 years (2 years interest only) | | LTV: 66% | | Prepayment: Defeasance | | Non-recourse | | Key Players: Gary M. Tenzer, Nick Silbergeld |
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| | | | Palatable Mezzanine Financing Available for Institutional Quality Commercial Assets Nationwide. GSP has identified a source of attractively priced mezzanine financing for all asset classes of commercial real estate nationwide. Currently, the fund is looking to provide the much needed capital between the limited leverage availability in the marketplace (between 50% LTV - 70% LTV) at a rate of approximately 12%. Although there are other players in this arena, they are more expensive, typically pricing their loans between 15% - 22%. This lower pricing affords the borrower a lower blended rate that may make the difference in a deal penciling in the tight credit environment. The fund is currently focused on high quality assets (institutional quality) in top tier, high barrier to entry primary markets. The financing can be structured as typical mezzanine or preferred equity (under same mezzanine terms) if need be. | | Transaction Size: $5M - $25M | | Rate: 12% -13% Fixed | | Loan Term: 3 to 5 years | | Max LTV: 70% | | Non-recourse | | Property Types: High Quality Assets Commercial Assets | | Fees: 1% to 1.5% | | Geography: Large MSAs |
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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%); Property Types: All major asset classes; Geography: Nationwide (primarily focused on western states). | | | 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. | | | 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. | | | Pascale's Perspective | by David R. Pascale, Jr.
Floating Rates: LIBOR and Ted Spread remain at their historic lows as the one year anniversary of the credit meltdown in the wake of the Lehman Brothers bankruptcy approaches. What about one year from now? Fed officials and their counterparts overseas have indicated that central banks will keep rates “near zero well into 2010”
Fixed Rates: Treasuries yields have dropped on recent reports suggestion the equities rally is “ahead of the data”, indicating a tepid recovery is underway. The 10 year T is at 3.36%.
Economy: Recent housing data suggests a bottom, but confirmation will only come if the recovery continues even after the expiration of major government incentive programs in the next few months. It’s akin to watching the auto-industry data after the expiration of “cash for clunkers” Employment is still the bogey, early data from August released today is indicating that the losses are slowing but “payroll stability” let alone recovery in jobs is not here yet… Stay tuned… | | | Speakers Corner | GSP Principal and Senior Director, Steve Bram will be a guest lecturer at UCLA Extension’s Advanced Real Estate Development class on Wednesday, September 2nd at 7pm. The class will cover the topic of "financing the deal" and include 40 real estate professionals looking to improve their skills through UCLA’s Professional Extension program. Mr. Bram has been a regular guest lecturer at a number of the UCLA Real Estate Extension classes for the past seven years. | | | 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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