GSPartners
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Volume XXI | No. 9 | March 5, 2014
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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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0.16%
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5 Yr US Treasury
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1.53%
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5 Yr Swaps
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1.63%
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12-MAT
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0.13%
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3 Month LIBOR
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0.24%
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10 Yr US Treasury
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2.70%
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10 Yr Swaps
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2.80%
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11th Dist COFI
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0.77%
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6 Month LIBOR
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0.33%
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30 Yr US Treasury
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3.65%
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| | | Transaction Description: | | $8,100,000 Mixed Use Refinance Senior w/Recorded 2nd Trust Deed George Smith Partners placed the refinanced of a mixed-use Los Angeles retail and affordable housing property. The multifamily component is 100% restricted affordable housing that coincides with a City sponsored 2nd Trust Deed. The City agreed to re-subordinate to the new financing but will remain a recorded instrument throughout the term of the loan. Most capital providers will not consider transactions with recorded seconds or permit ownership mezzanine debt at or post-close funding. The moderately leveraged asset is 100% leased and occupied but the retail component is light on national & regional credit and faces significant lease turn-over during the next two years. The Borrower required a 30 year due in 30 year self-liquidating loan to mitigate balloon event risk. The initial 10 year term is fixed at 5.0% (locked at application) before readjusting to 2.25% over the 10 year CMT. The prepayment steps-down from 5% and is open during the final five years of the fixed rate term. |
| | Rate: 5.0% Fixed for 10 Years | | Term: 30 Years | | Amort: 30 Years | | LTV: 70% | | Prepayment: 5%, 4%, 3%, 2%, 1% Open | | Recourse | | Advisor: David Stepanchak |
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| | | Transaction Description: | | $2,517,000 Class A Office Joint Venture Acquisition Equity George Smith Partners arranged $2,517,000 of Joint Venture equity for the acquisition of a Southern California Class A office building. The business plan calls for the 39,140 square foot office building to be repositioned and sold upon re-stabilization. This acquisition is part of the Sponsors’ expansion of their 16-property portfolio into the Southern California market. This asset presents an opportunity for significant upside, including major property upgrades and re-organizing top-tier tenants. Equity terms included a 95%/5% capital contribution with a 9% preferred return. |
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| | | Transaction Description: | | Acquisition Debt on 100% Vacant Multi-Family Property Shahin Yazdi successfully placed the 75% LTV acquisition debt on a Southern California multi-family asset that was 100% vacant at close of escrow. GSP negotiated an interest reserve with the capital provider. All rehab funds are controlled exclusively by the Sponsor. The lender agreed to raise their value constraint from 70% to 75% upon receipt of an insufficient MAI estimate. The Prime Rate plus 0.75% does not carry a pre-payment penalty for the two year term. |
| | Rate: Prime + 0.75% | | Term: 2 Years | | Amort: 1st Year IO then 30 Years | | LTV: 75% | | Recourse | | Advisor: Shahin Yazdi |
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| | | | National Ground-Up Construction – Non-Recourse Debt GSP is funding bridge and ground-up construction loan requests with a National Bank on a limited and non-recourse basis. Transactions to 75% of cost require full repayment guarantees although executions to 65% may be partial repayment or limited to just completion and carve-outs. All product types from $10,000,000 will be considered including hospitality and assisted living. LIBOR based pricing starts at 4.0%. A banking relationship is not requested or required. |
| | | 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 Press | Construction Capital is once again available as noted in today’s Hot Money and two recent articles quoting GSP Principals David Rifkind and Malcolm Davies. Commercial Property Executive’s March issue features several quotes from Mr. Rifkind on construction debt availability, pricing and volume. Malcolm Davies is featured in the March edition of MultiHousing News noting the re-entry of commercial and regional banks in to the construction segment of Commercial Real Estate. |
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©2014 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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