GSPartners
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Volume XVIII | No. 1 | January 6, 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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0.23%
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5 Yr US Treasury
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2.59%
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5 Yr Swaps
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3.87%
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12-MAT
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0.47%
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3 Month LIBOR
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0.25%
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10 Yr US Treasury
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3.82%
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10 Yr Swaps
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4.69%
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11th Dist COFI
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2.094%
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6 Month LIBOR
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0.43%
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30 Yr US Treasury
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4.69%
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| | | Bank Funding Non-Recourse "Out of the Box" Transactions Nationwide This bank does not have legacy issues like much of their brethren, so they have plenty of "dry powder" for 2010 and beyond. Preferred loan amounts are $10,000,000-$50,000,000. Lender is sizing transacctions at a 10-12% debt yield and can do staged fundings for properties in transition. Loans are usually non-recourse. Typical pricing is LIBOR based, with a coupon of 6.00-9.00% based on leverage and risk. Rates can be swapped to fixed. Lender will finance Discounted Note Payoffs or acquisitions of notes. Some secondary markets are considered. Preferred product types are apartments, office, industrial with retail and hotels on a selected basis. | | Transaction Size: $10,000,000 | | Rate: 6.00-9.00% | | Loan Term: 3,5,7 years | | Amort: 25-30 years or Interest Only | | Max LTV: 65-70% | | Max LTC: 65-70% | | Min DCR: 10-12% debt yield | | Recourse | | Property Types: Apartments, Office, Industrial (Some retail) | | Prepayment: Floating is prepayable after lockout period, Swap breakage for fixed | | Fees: 1.0% | | Geography: Nationwide |
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| | | Hot Money: CMBS Lending is Back | 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%). Mezz is available, increasing leverage potential. Terms of 5 or 10 years. Transaction Size: $15,000,000 and up; Loan Terms: 5 or 10 years; Amort: 25-30 years; Max LTV: 70%; Max LTC: 70% Min DCR: 1.30; Fees: 0.5 - 1.0%; Geography: Major Markets Nationwide | | | Hot Money: 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% | | | 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. | | | GSP Welcomes Wells Marvin | Wells Marvin is an experienced real estate executive with 30 years experience in commercial and residential finance, construction, sales and workouts. His areas of expertise include financing and developing golf course projects as well as housing and other residential developments. He is also an expert in financing, constructing and operating commercial properties such as shopping centers, hotels and office complexes. He is the owner/operator of several Marriott hotels and of Old Town La Quinta.
Mr. Marvin holds a degree in Political Science from the University of Oregon and earned his JD at Santa Clara University School of Law.
Professional and Academic Affiliations:
Member, State Bar of California Licensed California; General Contractor Licensed California; Real Estate Broker; Urban Land Institute; Rotary International; McCallum Center for the Performing Arts – past Director | | | Pascale's Perspective | The new year is seeing a large spike in long dated Treasury yields and continued steepening of the yield curve. The 10 year T jumped to 3.85% early this week. Why? Many investors are preferring the short dated Treasury notes as they are perceived to be more liquid at this point in the cycle. Also, the Fed is considering selling bonds from its balance sheet which now stands at over $2 trillion. The balance sheet expansion was due to the unprecedented bond buying by the Fed (including Treasuries, Fannie, Freddie and MBS) as part of the emergency stimulus in the wake of the credit crisis. Also, continuing positive economic reports are spurring investors to dump treasuries and invest in riskier assets......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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©2010 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
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