GSPartners
|
|
|
|
Volume XVII | No. 39 | December 17, 2009
|
|
|
|
|
|
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
3.25%
|
1 Month LIBOR
|
0.23%
|
5 Yr US Treasury
|
2.21%
|
5 Yr Swaps
|
2.66%
|
|
12-MAT
|
0.48%
|
3 Month LIBOR
|
0.25%
|
10 Yr US Treasury
|
3.47%
|
10 Yr Swaps
|
3.69%
|
|
11th Dist COFI
|
1.259%
|
6 Month LIBOR
|
0.44%
|
30 Yr US Treasury
|
4.40%
|
|
|
|
| | CMBS IS BACK! | | | | | After a long absence, CMBS has returned much earlier than expected....Sizing to 11-12% Debt Yield....7% Rate.....30-Year Amort....Mezz Financing Available GSP is in discussions with multiple originators now quoting standard, single-borrower securitized loans. Underwriting does not reflect the over exuberance 2004-2007, but it is quite encouraging relative to non-recourse capital available over the past 2 years. If this trend holds, CMBS will provide essential liquidity to the CRE market. Lenders are sizing to an 11-12% debt yield (Loan Amount = NOI divided by 11-12%) and charging fees of 0.5 or 1.0% depending on transaction size. Sources we know indicate that mezz is available, in addition, increasing leverage potential. Terms of 5 or 10 years. | | Transaction Size: $15,000,000 and up | | Loan Term: 5 or 10 years | | Amort: 25-30 years | | Max LTV: 70% | | Max LTC: 70% | | Min DCR: 1.30 | | Non-recourse | | Property Types: Apartments, Retail, Industrial, Office, Self Storage | | Prepayment: Defeasance | | Fees: 0.5 - 1.0% | | Geography: Major Markets Nationwide |
|
| | | Hotel Lending Update | A recently started fund is "dipping their toe" into hotel lending. Lender will consider full service, flagged, well located hotels. Specific terms are on a case by case baseis. Rates: 9% and up; Loan Terms: 2 to 5 years; Non-recourse; Lender Fee: 1.0% | | | Mezzanine Lender Seeking to "Close the Gap" Above Conservative Perm Lenders | This lender is funding large mezzanine loans on cash flowing properties. The mezzanine loan amounts are $10,000,000 and up. With 1st TD lenders topping out as low as 55% LTV, this financing can avoid costly "rebalancing" on refis coming off of high leverage CMBS or construction loans. Note that banks and life companies are wary of "sliced and diced" mezzanine loans where "tranche warfare" may occur. This is a true fund lender with asset management expertise. Loan Size: $10,000,000 and up Pricing is in the mid-teens for 3-5 year loan terms, leverage up to 70-75%. Lender is targeting cash flowing properties in strong markets, basic 4 product types. | | | 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 | Nervous investors poured money into treasuries this week due to: European troubles (Greece, etc) and higher than expected unemployment claims in the USA. Yield dropped on the 10 year to 3.48%. The Fed indicated a willingness to keep rates "extraordinarily low for an extended period of time" to aid the fragile economic recovery and to try to avoid a "double dip" recession. The consensus is that there will be no rate increase until unemployment dips to 8% or lower (it is at 10% now). The two major hurdles for employment are: (1) Lack of access to credit for small businesses and (2) A penny-pinching US consumer not likely to return to mid-decade's spendthrift buying habits.....Stay tuned..... | | | 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. |
|
|
|
|
©2009 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
