GSPartners
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Volume XVIII | No. 29 | July 28, 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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0.32%
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5 Yr US Treasury
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1.72%
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5 Yr Swaps
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1.91%
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12-MAT
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0.38%
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3 Month LIBOR
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0.48%
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10 Yr US Treasury
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2.98%
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10 Yr Swaps
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2.96%
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11th Dist COFI
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1.79%
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6 Month LIBOR
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0.69%
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30 Yr US Treasury
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4.06%
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| | | Transaction Description: | | $4,450,000 Refinance for 34 Unit Apartment Complex in Huntington Beach Borrower requested take out financing for a bridge loan that was used to completely renovate the property. GSP arranged fixed rate, non recourse financing with flexible prepayment. |
Challenge: Existing loan needed to be paid off within 30 days of the application. |
Solution: GSP identified three non-recourse lenders who competed with the agencies on the basis of speed and proceeds. GSP and borrower selected an East Coast based lender. All parties worked towards a timely close and the deadline was met. |
| | Rate: 5.50% | | Term: 15 years (5 years fixed) | | Amort: 30 years | | LTV: 62% | | DCR: 1.20 | | Prepayment: 4,3,2,1,1 | | Broker: Marc Schillinger |
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| | | Hot Money | Nationwide Porfolio Lender has $70,000,000 "Bucket of Mezz" to Place by End of Year Mezzanine loan amount: $15,000,000 to $40,000,000 (but will consider as low as $10,000,000 selectively) Lender will go to 85% LTV. Will go behind CMBS as preferred equity if needed. All major property types considered. Rates are in the low to mid teens with preferred transactions as low as 12%. | | | Hot Money | Fixed Rate Loans with No Prepay? Yes! Portfolio Lender is Funding 5 year Fixed Rate Loans With No Prepayment Penalty. This program is ideal for borrowers looking to lock in financing costs and retain flexibility. Most transactions are in California, but can go nationwide in good markets. Lender especially likes health care oriented properties such as medical office, surgery centers, etc. Will also finance standard office, retail, industrial. Single tenant properties ok with some structure for rollover reserves, etc. "Old Fashioned" simple documentation with low closing costs and smooth process. Lender will consider loans up to $9,000,000, but sweet spot is about $5,000,000. Transaction Size: $1,000,000 to $9,000,000; Rate: 6% to 7%; Loan Term: 5 years; Amort: 25 year; Max LTV: 75%; Max LTC: 75%; Min DCR: 1.25 (after reserves); Recourse; Property Types: Retail, Office, Industrial, Med Office, other Health Care; Prepayment: None; Fees: 1%; Geography: Nationwide | | | Hot Money | Life Company Funding Fixed Rate, Non Recourse Bridge Loans Nationwide Lender will consider Multifamily, Office, Industrial, Retail and selected Hospitality or Marinas. Lender understands Marina financing which is unique. Properties can be stabilized, near stabilized, partial lease up. No construction, but tenant improvements ok. Transaction sizes: $20,000,000 to $40,000,000;. Max LTV: 75%. Fixed rates range from 6% to 9%, depending on property dynamics. Typical structure: 2 year bridge with 2 x 1 year extensions; Interest only available for much of the loan term. Lender fee: usually 1.0%. | | | 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. | | | Pascale's Perspective | Watching the Curve: The gap between the 10 and 30 year treasuries is the largest since the Fed started buying securities in 2009. The difference between the 10 year at 3% and 30 year over 4% is quite steep based on recent history. It looks like the market is not predicting deflation. That's good news for investors fearing a mirror of Japan's "lost decade" of deflation and stagnant growth. There are lots of statistical similarities, but several economists point to major structural differences between present day US and 1990's Japan. LIBOR: With the recent successful European Bank stress tests, the Greece "fear factor" is subsiding. This is helping to bring LIBOR rates back down from their spike in May/June. FinReg: Initial buzz among securitized lending pros is that the Financial Reform bill is good for CMBS. Provisions regarding retention, etc are favorable. However, there are mandated studies and rulemaking over the next months and years that will affect the market.....Stay tuned....David R. Pascale, Jr. | | | Speakers Corner | On August 11, Steve Bram is speaking at a Real Estate Investment Analysis class at UCLA Extension. On August 24th, Steve is part of a panel at the Beverly Hills Bar Association Real Estate Law Division's event: "How to Be Effective Counsel for Borrowers of Commercial Real Estate Financing." The venue is Lawry's Restaurant in Beverly Hills. For more information, click here. | | | Equity Investors Consolidating Power as Fund Managers Jostle for Position -- Steven Orchard Blog | We continue to observe a migration of decision making authority away from managers and toward investors, as money flexes its muscles in response to several years of painful losses....click here to read the entire story |
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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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