GSPartners
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Volume XVIII | No. 10 | March 11, 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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2.42%
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5 Yr Swaps
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2.65%
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12-MAT
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0.44%
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3 Month LIBOR
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0.26%
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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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3.78%
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11th Dist COFI
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1.83%
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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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4.67%
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| | | Nationwide Bank Program Funding Well Priced Bridge Loans With construction lending still very slow, banks are using their balance sheets to fund cash flowing bridge loans or flexible mini perms. This bank is large enough to lend based on LIBOR, will look the 4 basic product types and some (very limited) hospitality. Ideal customer is a repeat borrower, but lender is not pushing lending program to attract deposits. Leverage is moderate, 65%, but pricing can start at 5.5% interest only. Transaction sizes range fromn $15,000,000 to $50,000,000 with no co-lender syndication required. Partial recourse required. | | Transaction Size: $15,000,000 - $50,000,000 | | Rate: LIBOR + 3.50-5.00%, 2% floor on LIBOR | | Loan Term: 3-4 years | | Amort: Int only | | Max LTV: 60-65% | | Min DCR: 1.0 | | Recourse Negotiable | | Property Types: Apartments, retail, industrial, office, some hotel | | Prepayment: Open after short lockout period | | Fees: 1% (negotiable) | | Geography: Nationwide |
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| | | Hot Money | Bridge Lender Providing Highly Leverage Debt for Large Upside Transactions This is "quasi-equity" for busted condos, discounted payoffs, and other "deal triage" situations. This is not programmatic lending, it is transaction specific. Recent transactions include a DPO on a hotel in a secondary market. Typical structure is up to 85% of cost, with lender getting a coupon and profit split to get to a 15+% IRR, or a 1.3-1.4 multiple. Transaction sizes are $10,000,000 to $30,000,000, terms 1-3 years. Secondary and tertiary markets OK; Rate: 10% plus participation; Loan Term: 1-3 years; Max LTV: 85%; Max LTC: 85%; Non-recourse | | | Hot 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 | | | Help Wanted | High volume loan originator is accepting resumes for new assistant/processor Duties would include processing lender applications, interfacing with third parties during closing process, and communication liaison with bank underwriters and clients.
Applicant must be competent in processing and closing procedures, experience working with high volume commercial loan transactions, and have the highest level of ethics and professional integrity. Desired previous work experience may include; bank processor or underwriter, or commercial loan broker processor/assistant. Please submit your cover letter and resume electronically to Todd August, COO George Smith Partners at taugust@gspartners.com.
Please put in the subject line “Processor Application”. Compensation will be based on previous work experience in the form of a hourly compensation with the opportunity to be paid bonuses on closed deals. George Smith Partners is an equal opportunity employer. | | | 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.....Click here to join the George Smith Partners group to get access to current conversations and topics. | | | Speakers Corner | Steve Bram, GSP Principal, will be speaking at the Real Estate Syndication Summit on March 16 at the Luxe Hotel in Brentwood (West Los Angeles). For more information, click here | | | Press Box | Gary Mozer was quoted here in Bloomberg discussing Apollo's purchase of Citi's property unit.
David R. Pascale, Jr. was quoted here in California Real Estate Journal discussing the restarting of CMBS. |
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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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