GSPartners
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Volume XVIII | No. 2 | January 10, 2010
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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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2.52%
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5 Yr Swaps
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2.83%
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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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3.78%
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10 Yr Swaps
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3.90%
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11th Dist COFI
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2.09%
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6 Month LIBOR
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0.40%
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30 Yr US Treasury
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4.70%
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| | | Transaction Description: | | $21,621,000 Refinance of Multi-Family Apartment Complex in Los Angeles GSP arranged the financing for a 198 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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| | Rate: 5.70% | | Term: 10 | | Amort: 30 (2 years interest only) | | LTV: 60% | | DCR: 1.30 | | Prepayment: Defeasance | | Non-recourse | | Key Players: Gary M. Tenzer, Nick Silbergeld |
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| | | | Bridge Lending Coming Back to Life! GSP met with the principals of a new fund made up of veteran real estate pros and investors. This is further evidence that we are at an opportunistic point in the cycle. Lender will fund loans for discounted note purchases, broken condos (on a case by case basis), or distressed "story" assets for experienced investors. Lender wants to see "skin in the game" and will lend up to 65% of the capital stack. Lender will consider transactions in major metro markets in Californa, Oregon, Nevada, Arizona, Utah. | | Transaction Size: $1,000,000-$7,000,000 | | Rate: 10-12% | | Loan Term: 12-24 months | | Amort: Interest only | | Max LTC: up to 65% | | Recourse Negotiable | | Property Types: Apartments, Retail, Office, Industrial, some Condos | | Fees: 2% | | Geography: CA, OR, NV, AZ, UT |
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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 transactions 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 and up; Rate: 6.00-9.00%; Loan Term: 3,5,7 years; Amort: 25-30 years or Interest Only; Max LTV: 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; Lender Fees: 1.0%; Geography: 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 basis. 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. | | | Speakers Corner | Steve Bram, GSP Senior Director and Principal, will be speaking at the Distressed Real Estate Summit: California at the Bonaventure, Thursday, February 04, 2010, from 8:00 AM - 5:00 PM (PT). For more information click here. | | | 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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