GSPartners
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Volume XVIII | No. 7 | February 17, 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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2.37%
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5 Yr Swaps
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2.69%
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12-MAT
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0.46%
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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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3.73%
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10 Yr Swaps
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3.81%
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11th Dist COFI
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1.828%
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6 Month LIBOR
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0.39%
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30 Yr US Treasury
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4.70%
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| | Report from the Big Apple - GSP Contingent Meets the Money | | | | | Insitutional Equity: 2010 JV Program GSP recently met with an institution providing debt and equity nationwide. The equity program parameters are a good bellweather to understanding the "middle of the fairway" targets for 2010. This institution is looking for Joint Ventures, matching their funds with local developers. They are looking for "Market Recovery, Reposition, and/or Value Added" transactions with 3-7 year hold periods. They are looking to take advantage of the "new basis" post credit crisis. Typical structure is 35% Equity/65% Leverage; with the instituion providing 50 - 85% of the required equity. Preferred returns: 8-12%; Return Targets: Minimum 16% Leveraged 5 year IRR | | Transaction Size: $10,000,000-$25,000,000 Equity Contribution | | Property Types: Apartments, Industrial, Retail, Office, Mixed Use, Hotel | | Geography: Major Markets Nationwide |
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| | | Hot Money | Non Recourse Bridge Lending Coming Back Attention opportunistic reposition buyers, this program is for you. Nationwide fund will lend on transitioning assets including fractured condos (that underwrite as apartments). Will structure future fundings depending on asset and business plan. Lender will fund interest reserve and carry. This is discretionary fund money, not a CDO or securitization based. Transaction Size: $10,000,000-$50,000,000 Rate: 7.5-9.5%; Loan Term: 3-5 years; Min DCR: 10% Debt Yield (Stabilized); Fees: 1% plus exit fee | | | Hot Money | Bank Mini-Perm Program This well capitalized institution is concentrating on "old fashioned" mini-perms, not construction or bridge. Bank is looking for relationships, repeat borrowers. This program is ideal for borrowers with cash flowing properties, looking for a good rate and flexibility. Loan Size: $3,000,000 - $15,000,000; Loan Term: 3-7 years, will do 5+5; Rates: 6.00% range, fixed or floating; Debt Yield: 10%; DCR: 1.30; Partial recourse; California only. | | | 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. | | | | Transaction Description: | | 8 Unit Multifamily Refinance with Cash Out 8 Unit Multifamily Refinance and Cash-Out GSP was retained to refinance an 8 Unit Multi-Family property in Los Angeles. The borrower requested a level of cash out that exceed typical lending parameters and they needed to close quickly because they were acquiring other assets. GSP leveraged its relationship with its lender to expedite third party reports and get an exception for the cash out.
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| | Rate: 6.25 | | Term: 10 | | Amort: 30 | | LTV: 75% | | DCR: 1.25 | | Lender Fee: Par | | Broker: Shahin Yazdi |
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| | | Speakers Corner | Steven Orchard is guest lecturing a class on CRE financing at USC’s Masters in Real Estate Development program on February 22.
Gary E. Mozer is leading a panel at the Family Office Wealth Conference presented by the Lido Symposium on February 24. | | | 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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