GSPartners
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Volume XXI | No. 6 | February 13, 2013
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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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0.20%
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5 Yr US Treasury
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0.91%
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5 Yr Swaps
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1.06%
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12-MAT
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0.18%
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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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2.03%
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10 Yr Swaps
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2.16%
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11th Dist COFI
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1.07%
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6 Month LIBOR
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0.47%
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30 Yr US Treasury
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3.23%
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| | | Transaction Description: | | $3,450,000 Restaurant Portfolio Refinance in Texas and Minnisota. GSP arranged the financing for a portfolio of restaurants comprised of several Burger Kings and an IHOP in tertiary locations throughout the Midwest. We were engaged to obtain a lower coupon and faster amortization, to provide debt free properties in the foreseeable future. GSP secured a 60% LTV fixed for 10 years at 4.45%; over 200 basis points lower than the previous loan. The lower rate yet much higher amortization netted the same cash flow after debt service to the Borrower, an important consideration for their family trust. The loans were funded separately and the properties are not cross-collateralized. |
| | Rate: 4.45% | | Term: 10 Years | | Amort: 15 Years | | LTV: 60% | | Prepayment: Yield Mantenance | | Recourse | | Lender Fee: 1% | | Brokers; Jonathan Lee, Shine Cheng |
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| | | Transaction Description: | | $2,140,000 Office Acquisition to 90% of Cost GSP arranged the 90% of purchase acquisition financing for a San Fernando, California office asset. The Borrower had been operating as a tenant from this location and exercised his option to purchase. Despite the high loan to purchase price, the monthly debt service plus tax & insurance impounds is lower than the market rental rate. With an increasing operational market share, the client did not wish to risk rising rental rates or the relocation exposure upon lease expiration. The rate is fixed at 4.925% and self-liquidates over the term of the loan. |
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| | | | Bridge to CMBS exit George Smith Partners is originating Bridge/Reposition to Perm loans for transactions $15,000,000 and up, nationwide. Bridge/Reposition assets may cash flow below breakeven (require an interest reserve) at funding and are underwritten based on the borrowers’ business plan to bring the asset to stabilization. Pricing is LIBOR plus 500 to 650 with an origination fee and exit fee: the exit waived upon rolling it into their perm. Traditional CMBS loans are underwritten from $5,000,000 to an 8% debt yield for multifamily, 8.5% for commercial and 11% on limited service hospitality. |
| | | Hot Money | Joint Venture Equity from $2,000,000 George Smith Partners has identified a transactional Joint Venture Equity firm willing to execute on smaller capitalized opportunities. Equity contributions from $2,000,000 to $10,000,000 will be considered up to 95% of the total capital stack. The co-invest will vary depending on the transaction and relative size of the request. Ground-up construction will be considered on a case-by-case basis. Secondary markets are a preference. IRR thresholds will most probably require a sale upon completion of the business plan. | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer, at (310) 867-2995 or TAugust@GSPartners.com. | | | In The News | GSP Managing Principal David Rifkind was recently interviewed by GlobeSt.com on the recovery of the commercial real estate market. Abundant low-cost capital is the fuel driving the increase to transactional volume for 2013. More of Mr. Rifkind’s opinions and comments may be read on-line here. |
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©2013 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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