GSPartners
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Volume XVII | No. 31 | October 7, 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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2.17%
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5 Yr Swaps
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2.62%
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12-MAT
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0.632%
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3 Month LIBOR
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0.28%
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10 Yr US Treasury
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3.18%
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10 Yr Swaps
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3.43%
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11th Dist COFI
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1.412%
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6 Month LIBOR
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0.60%
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30 Yr US Treasury
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4.00%
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| | | Transaction Description: | | $125,000,000 Refinance of Multi-Family Apartment Complex in Los Angeles. GSP arranged the financing for a 760 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. Due to the successful communication and execution, the borrower obtained a very low rate for a long-term fixed rate transaction in today’s market. |
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| | | Hot Money | Equity Fund Offering Unique Program for Properties in Need of Capital This program is targeted at properties in this "example" situation: An owner of a multi-tenant property has an opportunity to sign a new major tenant which will add value to the property. The owner needs capital to fund tenant improvements, leasing commissions, etc. The existing lender either will not or cannot fund the new capital required. The equity fund will enter into a joint venture with the owner and fund the needed capital. The fund's return is calculated based upon "before and after" valuations. This is ideal for borrowers who can't obtain bridge financing to pay off existing debt and fund improvements, but have an opportunity to increase value. | | | Hot Money | 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 | | | 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. | | | Congratulations to GSP's Max Friedman....It's a girl! | Max and Paty Friedman welcomed a new baby girl, Sophia Friedman, on September 25. Best wishes to Max and his family. | | | Pascale's Perspective | Spotlight on TALF and PPIP: The long awaited first new CMBS issuance under the government TALF program has been pushed into November (at the earliest). The low leverage (approximately 40% LTV) financing is for a portfolio of properties owned by Developers Diversified REIT and is being closely watched by the lending world as a benchmark for future CMBS. On the PPIP front, three new funds were approved last month to participate. This will be the beginning of the process that the TARP was intended for: purchasing toxic assets from the banks (mostly subprime residential loan securities) | | | Speakers Corner | Gary Mozer, GSP Principal, will speak at the REC Cabinet Breakfast October 8. Topic: The Current World: Deal Mechanics, Terms, and Financing in Today's Economy. For more information, click here. |
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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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