GSPartners
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Volume XXI | No. 9 | March 6, 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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0.80%
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5 Yr Swaps
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0.95%
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12-MAT
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0.18%
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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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1.93%
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10 Yr Swaps
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1.97%
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11th Dist COFI
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0.96%
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6 Month LIBOR
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0.45%
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30 Yr US Treasury
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3.15%
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| | | Transaction Description: | | $9,100,000 Bridge Acquisition of an 85% Occupied Las Vegas Retail Center GSP placed the $9,100,000 acquisition bridge loan for the purchase of The Shoppes at Harmon Square, a 35,265 square foot un-anchored shopping center located on the corner of Harmon Avenue and Paradise Road in Las Vegas, Nevada. The capital provider is a private fund that GSP corresponds with. The property is located adjacent to the Hard Rock Casino & Resort. As the main route to McCarran International Airport, Paradise Road provides Harmon Square with a 100,000 daily car count. At acquisition, the center was 85% occupied with no national tenants. The business plan calls for the Borrower to leverage the strong location to attract regional and national tenants, providing a synergy that will support higher rents. The bridge loan is 73% of total capitalization including acquisition and lease-up, and offers a facility to borrow further proceeds based upon new leases to 100% of future occupancy costs. The two-year term is interest only, paid current out of cash flow with partial recourse. The loan requires a 12 month “make whole” provision and opens with no prepayment thereafter. It is anticipated that the bridge facility will be taken out with a long-term, fixed rate loan within 16 months. All other terms are confidential. |
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| | | Transaction Description: | | $4,387,500 Cash-Out Non-Recourse Refinance for a 36-Unit Van Nuys Apartments GSP successfully arranged the 75% LTV refinance of a 36 unit rental building 22 months removed from a trustee sale. The Sponsor purchased the asset near vacant in an all-cash purchase and subsequently invested over $500,000 in capital upgrades prior to re-leasing the building. Through GSP’s efforts, the Borrower was able to pull all of their invested capital on this fully occupied asset. There is no balloon risk as the loan has a 30-year term, and 30 year amortization. |
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| | | | Opportunistic JV Equity: Value-Add, Ground-Up George Smith Partners is actively placing Joint Venture Equity requests with an opportunity fund for larger construction or reposition transactions. IRR requirements will vary although asset liquidation will be required upon stabilization in order to achieve the desired thresholds. Projects requiring a minimum of a $10,000,000 JV equity component in gateway cities will be considered for all core asset classes plus hotels, “For Rent” and “For Sale” housing. Entitled and un-entitled land will also be considered with the proper structure. This JV partner will fund option payments during the re-entitlement phase to avoid taking title of the dirt prior to construction. Sponsors must have a balance sheet and a positive reputation. |
| | | Hot Money | Multifamily 30 due 12 George Smith Partners is originating multifamily loans fixed for 12 years with 30 year amortization. These non-recourse loans are not constrained by stressed DCR tests or artificial capitalization rates. LTVs to 80% on purchases with up to three years of interest only for quality assets; 75% LTV for cash-out refinances. There is no interest-only option with any return of equity. Transactions are sized from $1,000,000 to $50,000,000 for stabilized assets nationwide. Par pricing tops off at 4.50% fixed for the 12 year term with larger transactions and/or lower leveraged requests funded at a reduced rate. | | | 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 |
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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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