GSPartners
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Volume XXI | No. 13 | April 3, 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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0.72%
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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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1.81%
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10 Yr Swaps
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2.01%
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11th Dist COFI
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1.00%
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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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3.05%
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| | | Transaction Description: | | $2,450,000 28-Unit Multifamily Cash-Out Refinance Jason Gaffner successfully placed the refinance of a stabilized multifamily property with an active regional bank. There was a substantial return of equity to the Borrower. The new financing is fixed for 5 years at 3.20% before rolling to an adjustable rate for the remained of the 30 year term. There is no balloon risk. The loan was sized to a 1.20 DCR and 75% LTV, aggressive constraints given the sizable return of equity. The application was initially limited to 70% LTV although GSP was able to negotiate a 5 basis point increase when the appraisal came in lower than underwritten to prevent the erosion of proceeds. GSP further supported the higher LTV with additional sale comps to support the loan request. |
| | Rate: 3.20% Fixed for 5 Years | | Term: 30 Years | | Amort: 30 Years | | LTV: 75% | | DCR: 1.20 | | Prepayment: 2,2,2,1, open | | Recourse | | Lender Fee: Par | | Broker: Jason Gaffner |
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| | | Transaction Description: | | $4,250,000 Acquisition Debt to 90% of Total Capitalization George Smith Partners successfully placed the $4,250,000 acquisition loan of a 50,000 square foot industrial building located in The San Fernando Valley. The purchaser will relocate his light manufacturing and distributing operations to this new location. The SBA 90% of cost offered a 1st and 2nd trust deed blended to 4.15%, fixed for 20 years. There is no rate-reset or balloon risk. The property condition inspection was less than favorable. GSP worked with the buyer, seller and lender to structure a capital improvement program acceptable to all parties. |
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| | | | More Mezz… Construction and Permanent A national hedge fund is flexing their balance sheet with the addition of construction or perm mezzanine debt behind a bank or Wall Street CMBS execution. Preferred equity may be structured if a tri-party agreement is unavailable. The 10 year term is co-terminus with the CMBS first, fixed at 10% Interest Only with a one point origination fee and one point exit fee. Construction mezz will be sized and structured on a case-by-case basis. This is true balance-sheet financing as the A Piece is not resold/leveraged and thus affords more flexibility to what may be executed. Loan requests will start at $5,000,000 & up. |
| | | Hot Money | Ground-Up Construction Resurgence George Smith Partners identified a regional bank expanding their balance sheet to include ground-up construction requests in California and Texas to 75% of total cost. Multi-family, office, retail, industrial and flagged hospitality will be considered to $15,000,000 on-book. Co-participation will double their capacity. Non-multi product will require a significant amount of pre-leasing. The prime based pricing is floored at 5.25% and will carry the option of a mini-perm at stabilization for a 5 or 7 year fixed term and step-down pre-payment. | | | 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. | | | Pascale's Perspective | Treasuries Move on North Korean “Fear Factor” Treasury rally due to saber rattling in Asia…. Today’s statement by Secretary of Defense Hagel referring the North Korean situation as a “danger” clearly rattled markets, sending the 10 year Treasury down to as low as 1.79%... Spreads still are relatively unchanged…. All-in full leverage rates (CMBS, Agency, Life Company) on good properties back in the 4.00% range, give or take a few bps. ..Stay tuned... David R. Pascale, Jr. |
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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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