GSPartners
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Volume XVII | No. 30 | September 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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0.24%
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5 Yr US Treasury
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2.32%
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5 Yr Swaps
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2.65%
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12-MAT
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0.758%
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3 Month LIBOR
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0.29%
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10 Yr US Treasury
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3.29%
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10 Yr Swaps
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3.43%
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11th Dist COFI
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1.473%
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6 Month LIBOR
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0.63%
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30 Yr US Treasury
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4.03%
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| | | Non Recourse Financing for Single Tenant Transactions, Including "near Investment Grade" Tenants This is an ideal nationwide program for investor owned properties leased to a "arms length" single tenant (ie: non-owner user). Note that lender will also fund under an SBA program for owner user. Lender analyzes tenant financials and does an internal "shadow rating" Tenant gross annual income should be $75,000,000 minimum. Shadow rating: minimum "BB" for office and indsustrial, "BBB" for retail. Target leverage is about 65%, but 75% max is ok for good transactions. Lease income will be "marked to market" based on property type and submarket dynamics. At this time, lender is targeting office, industrial and retail properties in good markets. No restaurants, franchisee fast food, or government leased properties. | | Transaction Size: $2,000,000 to $15,000,000 | | Rate: 8.25%-9.25% | | Loan Term: 5 years and up (must have minium 5 year lease) | | Amort: 25 years usually | | Max LTV: 75% (prefers 65%) | | Max LTC: 75% | | Min DCR: 1.25 | | Non-recourse | | Property Types: Office, Industrial, Retail (no Restaurants) | | Prepayment: Yield Maintenance | | Fees: Par | | Geography: Nationwide |
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| | | Hot Money | Ex-CMBS Veterans Roll-out Competitive Non-recourse Debt Fund. GSP has identified a new debt fund comprised of a group of ex-CMBS professionals that is looking to deploy capital. The fund will target the lending niche between conservative insurance company loans and higher-risk bridge loans and preferred equity. The fund is currently targeting borrowers with short-term maturities who need to refinance and prefer non-recourse debt. In addition to senior debt, the fund will finance purchases of distressed properties and will selectively write B-notes, mezzanine loans and bridge loans. The lender plans to keep the loans on its balance sheet - may consider securitization as an exit strategy when the CMBS market returns. Transaction Size: $10M -$50M; Rate: 8% - 10%; Loan Term: 3 to 7 years; Amort: 30 years; Max LTV: 75%; Non-recourse; Property Types: All major asset classes. | | | Hot Money | Institutional Fund Offering Non Recourse Financing for Large Transactions($25,000,000 and up) This program is being run by long time industry vets and will specialize in "big deals the life companies won't do." Lender will look at hotels, suburban office, non-grocery anchored retail for example. This is a "straight perm" program, underwriting is based upon current, in-place cash flow on quality assets. Principals have experience as owners, JV equity providers, and lenders. They understand investor "mindset" and can move quickly. Transaction Size: $25,000,000 to $80,000,000 Rate: 8.00% and up; Loan Term: 5 to 7 years;Amort: 25-30 years or Interest Only:Max LTV: 70%; Min DCR: 12% Debt Yield; Non-recourse; Property Types: Industrial, Retail, Office and "some" Hospitality; Prepayment: Yield Maintenance; Fees: Par; Geography: Nationwide | | | 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. | | | Press Box | Gary Mozer, GSP Principal/Senior Director, and Steve Orchard, GSP Vice President, wrote an article in Globe Street titled "What Capital Sources Want". They share their insights on what capital sources are demanding in the new-paradigm for debt and equity. | | | Pascale's Perspective | Fed and Economy: Recent hawkish comments by Fed officials indicating they will accelerate interest rate increases as the economy gains steam worried treasury investors. But Treasuries rallied on recent manufacturing and payroll reports showing a "bumpy road" for the economy. Fed governor Kohn also indicated a more nuanced stance towards future rate increases: saying that increases will be based upon several factors, not just asset price appreciation. The 10 year T is at 3.30%. Investors will be watching Friday's jobs numbers very closely....Stay tuned....David R. Pascale, Jr | | | 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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