GSPartners
|
|
|
|
Volume XVIII | No. 30 | August 18, 2010
|
|
|
|
|
|
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
3.25%
|
1 Month LIBOR
|
0.27%
|
5 Yr US Treasury
|
1.43%
|
5 Yr Swaps
|
1.65%
|
|
12-MAT
|
0.37%
|
3 Month LIBOR
|
0.35%
|
10 Yr US Treasury
|
2.62%
|
10 Yr Swaps
|
2.60%
|
|
11th Dist COFI
|
1.80%
|
6 Month LIBOR
|
0.58%
|
30 Yr US Treasury
|
3.72%
|
|
|
|
| | | Transaction Description: | | $9,000,000 Bridge Loan (73% LTC, 7.5% rate, Non-Recourse) for Multi-Family Acquisition/Renovation in Denver, Colorado GSP arranged bridge financing for the REO acquisition of a 300-unit Class B- 1973-built apartment community in Denver Colorado. The property is 62% occupied with rents 13% below market and suffers significant deferred maintenance due to its distressed financial status. Proceeds based on: 73% LTC, 15% Stable Debt Yield
|
Challenge: The transaction involved a B- asset that was in need of a substantial renovation. Only partial historical financial information was available due to foreclosure by the existing lender. In addition, the new borrower required non-recourse financing. |
Solution: GSP worked with the lender to demonstrate that the contemplated cost basis allowed the sponsor to complete the renovation plan and still compete aggressively on rents. GSP also highlighted the sponsor’s strong resume to assure successful execution of the business plan despite the limited available property information. |
| | Rate: LIBOR + 2.75%, 2.0% floor on LIBOR | | Term: 3 years with 2 x 1 year extensions | | Amort: Interest Only | | LTC: 73% | | Prepayment: None | | Non-recourse | | Lender Fee: 1.25% with 2.0% exit fee reduced to 1.0% if refinanced with lender's agency financing | | Brokers: Gary E. Mozer, Steven Orchard, Josh Roseman |
|
|
| | | Hot Money | Single Tenant Non Recourse Financing Fixed rates are dropping to historic lows across the lending spectrum. This nationwide lender is funding single tenant transactions (S& P rated "BB" or equivalent private credit) at attractive rates. Note that lender analyzes non-rated tenants with their own model. Loan term is equal to remaining lease term. Loan Size: $2,000,000- $20,000,000; Rates: 5.50-7.00% fixed; Max LTV: 75%; Min DCR: 1.20; Amort: 25 years; Lender Fee: Par | | | 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%. | | | 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 plus topical newsfeeds. | | | Pascale's Perspective | Spotlight on CMBS: The recent securitizations have been oversubscribed, new players are entering the fray. There may be about 12-15 active originators by the end of the year. New B piece buyers: Some of the recently formed opportunity funds are hitting their yield targets by buying B-pieces. They like being in first loss position on the new underwriting basis for yields rumored to be about 16-19%. GSP received quotes today for a full leverage retail property, the 5 year quote is 4.92%, 10 year is 5.15%. Still, acquisition volume is nowhere near mid-decade levels as there is still plenty of "bid-ask disconnect" among buyers and sellers......Stay tuned.....David R. Pascale, Jr. | | | Speakers Corner | Next Tuesday, August 24th, Steve Bram will be speaking on 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. | | | 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. |
|
|
|
|
©2010 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
