GSPartners
|
|
|
|
Volume XXI | No. 16 | April 24, 2013
|
|
|
|
|
|
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
3.25%
|
1 Month LIBOR
|
0.20%
|
5 Yr US Treasury
|
0.69%
|
5 Yr Swaps
|
0.88%
|
|
12-MAT
|
0.17%
|
3 Month LIBOR
|
0.28%
|
10 Yr US Treasury
|
1.70%
|
10 Yr Swaps
|
1.87%
|
|
11th Dist COFI
|
1.00%
|
6 Month LIBOR
|
0.44%
|
30 Yr US Treasury
|
2.90%
|
|
|
|
| | | Transaction Description: | | $1,950,000 Multifamily Purchase Jason Gaffner successfully negotiated the acquisition financing for a 19 unit multifamily asset in the heart of Korea Town. The new loan is fixed for 5 years at 3.60% before rolling to an adjustable rate for the remainder of the 30 year term. The loan is constrained by a 1.20 DCR and 75% LTC. The seller converted a utility room to a 19th unit but neglected to obtain permits. Loan proceeds were DCR constrained to $1,850,000 without the benefit of the cash flow from the additional unit. GSP was able to maintain the requested loan proceeds by successfully negotiating a $100,000 holdback to be released once the applied-for documentation is furnished by the municipality. |
| | Rate: 3.60% | | Term: 5 Year Fixed then floats for 25 Years @ L+2.25% | | Amort: 30 Years | | LTC: 75% | | DCR: 1.20 | | Prepayment: 3,2,1, open | | Recourse | | Lender Fee: Par | | Broker: Jason Gaffner |
|
|
| | | Transaction Description: | | $7,500,000 Term Loan for Pool of Stabilized SFR Rentals Nationwide George Smith Partners successfully placed the $7,500,000 loan to recapitalize a 74-property pool of single family residences leased as rental investments in California, expandable to a Nationwide platform. The renovated single family detached homes must maintain 80% occupancy as a pool. The loan allows for the pool to include multifamily (4+ unit) properties. |
Challenge: The lender had to complete appraisals for each individual property. Due to the presence of a commercial property within the pool, the lender had to perform an environmental evaluation on the asset. Logistically, placing security interests on each asset in a portfolio of 74 assets presents an arduous task for both the Lender and Borrower. |
Solution: The Lender streamlined the process by utilizing an Appraiser with offices local to each of the assets. By pooling all assets into two geographically defined LLC’s, the Lender was able to secure its interests in each asset in a relatively simplified manner. |
| |
|
| | | | International Equity Fund GSP is working with an international firm with 700+ employees in 10 countries possessing ample capital to be deployed. With almost $78 billion under management, their real estate allocation is poised for global growth. Equity contributions from $20,000,000 up to several hundred million dollars are available to quality borrowers. Co-invest and IRR hurtles are transaction specific although the fund is experienced with complicated transactions and embraces structure. |
| | | Hot Money | SoCal Construction/Reposition to $6,000,000 GSP is working with a Southern California Community Bank actively funding ground-up construction and major reposition assets from $1,000,000 to $6,000,000. They can work through moving pieces and special use assets including hospitality, tract & spec housing. Loan requests from Santa Barbara to San Diego including the Inland Empire will be underwritten at Prime + 1.5%. This portfolio lender does not carry any legacy paper and operates with a flat decision making process. | | | 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 | Still Bullish on Bonds...... Remember early last month when some were saying "the long bull market in Treasuries is coming to an end" as the 10 year yield hit 2.09%? Well, not quite yet, the 10 year T is back down to 1.70 and hit lows of 1.65% over the past week.... Why?..... Investors aren't sold on the macro economic recovery, lingering "fear factor" over Europe (Greece again), and the continuing specter of low inflation and potential deflation.... Spotlight on RMBS: We discuss the comeback of CMBS often in FINfacts, as that market continues to grow and strengthen. But now there are the first new issues of Residential Mortgage Backed Securities (Bonds) from the private sector (not backed by FHA, Fed). This market was issuing over $1 trillion per year before the credit crisis. This year has seen over $30 billion in RMBS with yield hungry investors bidding for more. The hope is that underwriting standards on the underlying mortgages have tightened "this time" and the rating agencies are scrutinizing accordingly. ...stay tuned… David R. Pascale, Jr. |
|
|
|
|
©2013 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
