GSPartners
|
|
|
|
Volume XVIII | No. 3 | January 20, 2010
|
|
|
|
|
|
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
3.25%
|
1 Month LIBOR
|
.23%
|
5 Yr US Treasury
|
2.42%
|
5 Yr Swaps
|
2.74%
|
|
12-MAT
|
0.47%
|
3 Month LIBOR
|
.25%
|
10 Yr US Treasury
|
3.65%
|
10 Yr Swaps
|
3.82%
|
|
11th Dist COFI
|
2.09%
|
6 Month LIBOR
|
.39%
|
30 Yr US Treasury
|
4.54%
|
|
|
|
| | | Transaction Description: | | 18 Unit Multifamily Refinance and Cash-Out GSP was retained to refinance an 18 Unit Multi-Family property in Los Angeles. Our client bought the property with 65% seller carry-back financing and wanted to refinance it less than a month later to pull cash out. The note he received from the seller was due four months after the purchase. |
Challenge: 1) Lenders wanted to wait until the borrower owned the property for 6 Months before they issued the application and allowed any cash out. 2) The Engineering Report showed the PML was 21%. 3) We were missing 3 Months of 2009 financials.
|
Solution: 1) GSP identified a Lender that was willing to cash out despite limited ownership period. 2) GSP convinced the Lender to hold-back a portion of the proceeds so the borrower can do the retrofit work required. 3) GSP had the onsite manager estimate the collections and we used current expenses to estimate. |
| | Rate: 6.43 | | Term: 10 | | Amort: 30 | | LTV: 75% | | LTC: 1.25 | | Lender Fee: Par | | Broker: Shahin Yazdi |
|
|
| | | | Permanent Loan Solutions from Portfolio Lender, $10,000,000 and Up This is not CMBS, but it's non recourse (or limited recourse) and flexible. Lender services their own loans. The 4 major property types will be considered, in major markets with good sponsorship. The loans are LIBOR based floaters (spreads anywhere from approximately 3.5-5%) with flexible structures including lockouts, yield maintenance, Swap to fixed, exit fees, etc customized per transaction dynamics. Note that 3 to 5 year terms swap out at about 6-6.5% fixed in today's futures environment. Lender offers 3-10 year loan terms and 25-30 year amortizations. | | Transaction Size: $10,000,000 and up | | Rate: LIBOR + 3.5 to 5.0% | | Loan Term: 3-10 years | | Amort: 25-30 years | | Max LTV: 11% debt yield | | Recourse Negotiable | | Property Types: Apartments, Retail, Industrial, Office | | Prepayment: Yield Maintenance or Swap breakage | | Fees: up to 1.0% |
|
| | | Hot Money | 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%; Property Types: Apartments, Retail, Office, Industrial, some Condos; Fees: 2%
UPDATE: Lender will consider adding mezz to their own senior loans, from 60% up to 85% LTV, 12% Pref + 20% participation, note that this is an exception for "exceptional transactions" not the rule. | | | 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. | | | Join us on LinkedIn | George Smith Partners is now on LinkedIn.....Come on and join the George Smith Partners group to get access to current conversations and topics. | | | Speakers Corner | On January 27th, David Rifkind and David R. Pascale, Jr. will be joined by several industry experts on the Distinguished Speakers Panel sponsored by the UCLA Ziman Center for Real Estate. The evening’s discussion topic is: “Government Programs and the Capital Markets”. The panel, along with Anderson first and second-year students, will discuss government programs such as TALF and PPIP. The Ziman Center For Real Estate is a multidisciplinary research center of UCLA Anderson School of Management and UCLA School of Law. 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. |
|
|
|
|
©2010 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
