GSPartners
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Volume XIX | No. 7 | February 17, 2011
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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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2.28%
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5 Yr Swaps
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2.52%
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12-MAT
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0.31%
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3 Month LIBOR
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0.31%
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10 Yr US Treasury
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3.57%
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10 Yr Swaps
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3.68%
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11th Dist COFI
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1.51%
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6 Month LIBOR
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0.46%
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30 Yr US Treasury
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4.66%
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| | | Transaction Description: | | 10 Year Fixed Rate Loan on Walgreens Ground Lease GSP arranged a Cash-Out, 10 Year, Non-Recourse, 25 Yr amortizing loan on a property with a Land Lease to Walgreens. Only one of the three principals was willing to show his financials. With interest rates moving up, the borrowers wanted to rate lock as soon as possible. GSP secured a lender that was willing to rate lock at application and only underwrite one of the principals. Loan amount: $2,200,000
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| | Rate: 5.75% | | Term: 10 years | | Amort: 25 years | | LTV: 60% | | Prepayment: Yield Maintenance | | Non-recourse | | Broker: Shahin Yazdi |
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| | | Hot Money | Nationwide Portfolio Lender Funding Aggressively Priced, Non Recourse Bridge Loans This lender is looking for higher quality assets, "big" sponsors and will price accordingly. They are targeting $2 billion of "on book" bridge loans for 2011. For qualifying transactions, this is a fantastic program. For those that don't qualify, there are plenty of higher priced bridge lenders we are accessing. Loan Size: $10,000,000 to $75,000,000; LTV: Non-Recourse up to 65%, will go higher with recourse; Exit Debt Yield: 9.5%; Pricing: LIBOR + 2.50 - 3.50% with NO floor; Amort: Interest Only. | | | Hot Money | Bridge Financing for Apartments This lender made a splash at MBA with a program for an underserved sector, unstabilized or nearly stabilized multifamily. This is a bridge program designed to feed agency business. Lender looking for Class "B" properties or better. Loan size: $5,000,000 to $25,000,000; Term: 3 - 18 months; Rates: Floating, competitive; Non recourse; Interest only, Lender will go to 1.0 DCR. | | | Hot Money | Non-Recourse Floating Rate Program for Stabilized or Near Stabilized Properties This program is ideal for borrowers with good properties seeking low cost financing that retains flexibility. Properties must be 80% occupied (lender is very strict on this requirement). Some rehab is ok on this program and lender can "get structural" Loan Size: $25,000,000 and up (no max), can do smaller once first $25,000,000 is on book, portfolios of properties ok; Pricing: LIBOR + 2.50% (No floor); Fixed rate swaps available; Max LTV: 65%; Debt Yield: 10%; Loan Term: 3+1+1, 5, 7 years; Amort: Interest Only for 3 years then amortizing. Non recourse with carveouts. | | | 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 | Treasuries Rise as Spreads Narrow The "long rally in treasuries is ending" is a common refrain today as a combination of less fear, more appetite for risk, inflation rumbles, signs of recovery, supply concerns and other factors contribute to investors' diminished appetite for US debt. Fortunately for borrowers, the renewed appetite for risk is driving spreads downward for the agencies, CMBS and portfolio lenders. Right now we are seeing some sub 200 spreads for CMBS, meaning a full leverage transaction should price at about 5.75% for 10 years. CMBS bonds are rallying, a major pool priced AAA 10 year bonds at approximately Swaps + 100 this week, originators continue to "sharpen their pencils"......Stay tuned......David 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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©2011 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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