GSPartners
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Volume XVIII | No. 33 | September 9, 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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0.26%
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5 Yr US Treasury
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1.55%
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5 Yr Swaps
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1.77%
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12-MAT
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0.35%
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3 Month LIBOR
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0.29%
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10 Yr US Treasury
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2.75%
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10 Yr Swaps
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2.75%
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11th Dist COFI
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1.75%
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6 Month LIBOR
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0.49%
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30 Yr US Treasury
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3.84%
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| | | Transaction Description: | | $60,000,000 Permanent Financing for a 340,000 s.f. Office Campus for JH Snyder and Goldstein Planting Companies. GSP arranged $60,000,000 of financing including $47,000,000 Senior Loan from a CMBS lender and $13,000,000 Preferred Equity from a opportunity fund for an office campus consisting of 328,000 s.f. of office and 11,375 s.f. of retail in the center of the aerospace focused El Segundo “superblock” submarket of Los Angeles, CA. The borrower purchased the then-50% occupied asset in March of 2007 with a $57,000,000 bridge loan, which provided funds for provided TI’s for new tenants, construction of the 11,375 s.f. retail pad, and improvements to the property’s common areas. Occupancy of the office building increased from 50% to almost 90% by the Summer of 2009. The loan was due and the borrower engaged GSP to find suitable replacement debt. GSP secured $47 million of CMBS debt and $13 million of preferred equity to complete the transaction. The non-recourse loan included some holdbacks for additional leasing TI’s and new signage for the property. Snyder and Goldstein Planting are one of the largest developers in California and have built, managed and developed over 6 million s.f. of commercial space over the past 60 years. |
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SENIOR DEBT
Amount: $47,000,000
Rate: 5.2%
Term: 5 Years
Amortization: 30 Years
LTV: 70%
DCR: 1.50
Prepayment: Defeasance
PREFERRED EQUITY
Amount: $13,000,000
Rate: Market Rates
Term: 5 Years
Prepayment: 10% prepay per yr allowed.
Amortization: Interest Only
Lender Fee: 1% plus 1% exit fee
Brokers: Steve Bram, Jonathan Lee
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| | | Hot Money | Opportunity Fund Looking to Purchase Minority Interests in Real Estate Assets This is ideal for junior partners in a good property to monetize their interest without a property sale. Fund interests will also be considered. Fund is looking for "A" assets in "A or B" locations in the $10,000,000 to $75,000,000 range, major markets. This fund will also fund Discounted Note Purchases where investors are buying back their own debt. Typical structure is a 12-15% lookback IRR with a promote schedule over a threshold. | | | Hot Money | West Coast Capital Source Funding "Mid-Size" Mezzanine and Preferred Equity This program is tailored for refis of maturing loans (where new senior loan proceeds are short). The new money, can be structured as mezzanine or preferred equity. Typical loan size: $2,000,000-$7,000,000. Max LTV: 85%; Min DCR (combined): 1.05; Geographic target: Core markets in western states. Yield targets are in the low to mid teens over a 2 to 7 year term. | | | 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 | | | 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. | | | Speakers Corner | Steve Bram will be the featured speaker in a Webinar for the The Commercial REO Brokers Association (CREOBA) discussing Commercial Loan Workouts on Sept 28th at 10am. For more information on CREOBA, click here. | | | Cap Rate-Treasury Spread Near All Time High -- Steven Orchard Blog | The spread between commercial cap-rates and US treasuries is near an all time high, Bloomberg reports. This suggests that “real estate is poised for a rebound”, according to experts quoted. Click here to read the entire post. | | | 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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