GSPartners
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Volume XVIII | No. 31 | August 12, 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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0.28%
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5 Yr US Treasury
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1.47%
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5 Yr Swaps
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1.66%
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12-MAT
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0.37%
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3 Month LIBOR
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0.38%
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10 Yr US Treasury
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2.73%
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10 Yr Swaps
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2.71%
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11th Dist COFI
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1.80%
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6 Month LIBOR
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0.59%
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30 Yr US Treasury
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3.94%
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| | | Transaction Description: | | $13,080,000 Permanent Financing and $4,360,000 Equity Investment for the Acquisition of a Multi-Family Complex in Redlands, CA GSP successfully arranged a 10-year fixed-rate loan and equity for a Class B, low density apartment community. The institutional seller was faced with reporting deadlines and required the transaction to be closed within a 3 week period from initial engagement with the buyer. GSP was closely involved with the processing and due diligence to make sure the loan closed on schedule. The GSP team's involvement proved valuable when the lender issued their commitment the day before the closing deadline and minutes before the cut-off to lock the rate and allow the transaction to be funded first thing the next morning.
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| | | Transaction Description: | | Private Placement Transaction: Closed in 3-business Days from Start to Finish! Property was owned free-and-clear: our client was in need of funds to complete a much larger transaction. The most efficient way to obtain these funds was to place a quick-close loan on the unleveraged building. Loan Amount: $800,000
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| | Rate: 10.5% | | Term: 20 years | | Amort: 20 years | | LTV: 60% | | Prepayment: Open to prepay | | Non-recourse | | Lender Fee: 3.5% | | Broker: David Rifkind |
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| | | Hot Money | Bank Funding Selective Construction Loans in California Construction lending is by no means "back" like the mid-decade heyday, but some banks are active. Underwriting is thorough, recourse is a must, locations need to be "infill" in major markets such as Los Angeles, Bay Area, etc. Loan Size: $2,000,000 to $7,000,000; Max LTC: 65%; Pricing: Prime + 1.00% with 7.5% rate floor; Property Types: Apartments, Retail, Office, Industrial, Self Storage; Recourse: yes; Lender Fee: 1.00-2.00% | | | 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 | Apartment Fixed Rates at Historic Lows Agencies, CMBS, Insurance companies are aggressively pricing multifamily loans right now. This is the best fixed rate environment in several years. 5 year loans at sub 4%, 10 year loans at 5%. Some interest only period (2 years typically) allowed. Fixed rate, non recourse, up to 80% of value, 30 year amortization. We are seeing borrowers prepay and defease to take advantage of the rate environment. | | | 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. | | | Press Box | | | | 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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