GSPartners
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Volume XVIII | No. 4 | January 27, 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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2.39%
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5 Yr Swaps
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2.65%
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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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3.65%
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10 Yr Swaps
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3.72%
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11th Dist COFI
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2.094%
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6 Month LIBOR
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0.38%
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30 Yr US Treasury
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4.56%
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| | | Health Care Bridge Lending Another sign of the capital markets returning as financing for "non core 4 product type" properties is available. This lender is another newly formed fund staffed by industry veterans. The business plan is to provide "bridge to HUD" or other perm programs. They will fund at break even or below on transitional properties, focussing on sponsor expertise. Lender will look at medical office, hospitals, skilled nursing facilities, congregate care, alzheimers, etc. Lender will even look at properties backed by gym memberships! Loan amounts are deal specific, lender likes "good basis" on distressed acquisitions, etc. Typical pricing is LIBOR (5% floor on LIBOR) plus 5 to 8%, so its basically a fixed rate transaction at 10-13%. | | Transaction Size: $7,000,000 and up | | Rate: LIBOR + 5.0 to 8.0%, 5% floor on LIBOR | | Loan Term: 3 years (extension available) | | Amort: Int Only | | Recourse Negotiable | | Property Types: Health Care (all types) | | Prepayment: 18 month lock out | | Fees: 1.0% lender fee, 1.0% exit fee | | Geography: Nationwide |
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| | | Hot Money | Permanent Loan Solutions from Portfolio Lender 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; 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%; 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. | | | Speakers Corner | GSP's Jonathan Grossman will be on a distressed real estate panel at the Distressed Real Estate Summit at the Bonaventure Hotel (downtown LA) on February 4, 2010. 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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