GSPartners
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Volume XVIII | No. 11 | March 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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0.24%
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5 Yr US Treasury
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2.36%
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5 Yr Swaps
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2.64%
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12-MAT
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0.44%
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3 Month LIBOR
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0.27%
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10 Yr US Treasury
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3.08%
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10 Yr Swaps
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3.73%
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11th Dist COFI
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1.828%
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6 Month LIBOR
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0.40%
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30 Yr US Treasury
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3.64%
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| | | Transaction Description: | | $18,500,000 Refinance of Two Office Properties in Southern California at approximately 6.75% GSP successfully closed a 5 year, fixed-rate loan for two, 95% occupied office buildings. We were able to locate a lender that was comfortable with the non-credit nature of the tenants and the 100% lease roll during the loan term.
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| | Rate: approximately 6.75% | | Term: 5 years | | Amort: 25 years | | LTV: 70% | | DCR: 1.30 | | Prepayment: Locked out for the first two years then 3%, 2%, 1% | | Lender Fee: 0.5% | | Brokers: Steve Bram, Allison Higgins |
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| | | Hot Money | Capital provider with over $3.0 billion to purchase/originate debt on all major real estate product types throughout North America. Structures include senior debt, mezzanine debt, preferred equity and note purchase financing. Minimum size investment is $40 million which could be on a single asset or on a portfolio of assets. Preferable term is 3 to 5 years but could do more and pricing is 8% to 15%+ with LTV’s capping in the 75% to 80% range. Not a buyer of distressed “loan to own” debt but capable of providing the note purchase financing for others employing this strategy. | | | Hot Money | 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; 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; Property Types: Apartments, retail, industrial, office, some hotel; Prepayment: Open after short lockout period; Fees: 1% (negotiable) Geography: Nationwide | | | 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 | | | 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 | Gary M. Tenzer is co-chairing the planning committee for the Benjamin S. Crocker Symposium--Negotiating the Real Estate Maze: Challenges and Opportunities. He will speak during the opening remarks. The symposium will take place on March 23, 2010 at the Los Angeles Convention Center. This will be one of the year's most well attended real estate events. For more info, click here. | | | 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. | | | Press Box | Gary E. Mozer moderated a panel discussion at Lido Consulting's 5th Annual Investment Symposium at the Beverly Hills Hotel on February 24 and 25. To see video of his remarks, click here. |
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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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