GSPartners
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Volume XVIII | No. 43 | November 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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0.25%
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5 Yr US Treasury
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1.48%
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5 Yr Swaps
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1.69%
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12-MAT
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0.33%
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3 Month LIBOR
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0.28%
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10 Yr US Treasury
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2.89%
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10 Yr Swaps
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2.92%
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11th Dist COFI
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1.66%
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6 Month LIBOR
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0.44%
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30 Yr US Treasury
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4.29%
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| | | Transaction Description: | | 15 Year Self Liquidating Financing for Single Tenant Medical Office GSP arranged financing for a 2010 built, 7000 sq ft Single Tenant Medical Office in Hawaiian Gardens, CA.
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Challenge: (1) The tenant had 11 years remaining on their lease but our client wanted a 15 Yr loan term (2) The rent per SF was significantly above market rents
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Solution: (1) Based on an amortization schedule and market comparables, GSP demonstrated to the lender’s satisfaction that the loan balance in year 11, (when the lease expires), will be less than 50% of the value of land and improvements. (2) GSP also demonstrated that the age of the building and superior improvements, which were created specifically for this tenant, command a higher rent than other medical office buildings in the surrounding area |
| | Rate: 5.87 | | Term: 15 years | | Amort: 15 years | | LTV: 65% | | DCR: 1.13 | | Prepayment: Swap based | | Broker: Shahin Yazdi |
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| | | | Aggressive "Full Leverage" Permanent Program Funding Loans $15,000,000 and up, Nationwide This lender is pushing leverage in to 1.15 DCR and 80% LTV for good transactions. It's a "one-stop shop" senior/mezz or B note for stabilized "Core 4" property types plus hotels | | Transaction Size: $15,000,000 and up | | Rate: 5.50-6.50% approx | | Amort: 25-30 years | | Max LTV: 80% | | Min DCR: 1.15 | | Non-recourse | | Property Types: Apartments, Office, Retail, Industrial, Hospitality | | Prepayment: Defeasance or Yield Maintenance | | Fees: 0.25-0.50% | | Geography: Nationwide |
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| | | Hot Money | Portfolio Lender Funding 3-5 Year Perm Loans, Flexible Prepay Available With CMBS rapidly becoming the 800 pound gorilla in the lending world, funds are innovating structures for borrowers who want flexibility and simpler loan documents. This fund likes multifamily, retail, office, industrial and hotels. Asset quality and location are key (prefers "B" asset and "B" location at minimum). Flexible prepay and some interest only is available (no full term IO however). Loan size: $5,000,000 to $50,000,000; Rates: 6% - 7.5% range; Loan Term: 3-5 years; Amort: 30 years; Max LTV: 75%; Non recourse. | | | Hot Money | Approved Freddie Mac Mezzanine Lender Actively Investing Behind Senior Agency Debt, Lending up to 90% Combined LTV and 1.05 DCR Lender is a national multi-family real estate mezzanine lender. Their fixed rate loans are ideal for new acquisitions or cash-in refinancing. $1 million is the minimum loan amount and the loan term is coterminous with the Freddie Mac loan. Qualifying properties include stabilized, conventional Class A and B multifamily properties in good physical condition with opportunity for improved performance. | | | 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 | Treasury Yields Rise, Why? The 10 year T hit a high of about 2.95% this week as investors dump treasuries and demand more yield. The 10 year T was at 2.41% in early October. This 50 basis point rise in 6 weeks has affected loan rates (and proceeds as most loans are DCR constrained). Is the controversial Fed bond purchase program backfiring? It seems that we are seeing "buy the rumor, sell the news" syndrome as investors stocked up on treasuries on speculation of the program and are now selling. A Japanese bond analyst quoted in Bloomberg remarked: "'Treasuries had been overbought on quantitative easing hopes and unwinding of such positions is likely to continue until the excess is squared." Note that the actual Fed purchases are not complete and may bring yields down, but it is not a sure thing. Also, a run up in commodities prices earlier in the week stoked inflation fears which contributed to the selloff. Interesting dynamic occured yesterday: speculation that Chinese central banks may raise rates caused commodity prices to cool down, thereby slowing down the selling of US Treasuries and lowering yields slightly (down to 2.89% from 2.95%) So our rates drop when Chinese rates rise?.....Stay tuned.....David R. Pascale, Jr. | | | 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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