GSPartners
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Volume XXI | No. 26 | July 9, 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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0.15%
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5 Yr US Treasury
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1.67%
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5 Yr Swaps
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1.76%
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12-MAT
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0.12%
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3 Month LIBOR
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0.23%
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10 Yr US Treasury
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2.56%
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10 Yr Swaps
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2.66%
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11th Dist COFI
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0.67%
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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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3.38%
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| | | Transaction Description: | | $30,000,000 Cash-Out Refinance of a Dry-Goods Anchored Retail Center George Smith Partners successfully placed the cash-out refinance of a 400,000 square foot dry-goods anchored retail center. Although the asset has a long history of 95% occupancy, the subject is currently witnessing a transition as a major tenant and two minor tenants recently vacated and have yet to be replaced. Despite the tenant reposition at funding, the non-recourse loan provided a sizable return of equity to the Sponsor. The 7-year term is fixed at 4.13%, amortized over 30 years after 12 months of interest only. |
| | Rate: 4.13% | | Term: 7 Years | | Amort: 1 Year IO; then 30 Years | | Non-recourse | | Advisor: David Stepanchak |
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| | | Transaction Description: | | $4,000,000 Acquisition for Single Tenant Tractor Supply George Smith Partners arranged acquisition financing for a single tenant Tractor Supply located in a tertiary northern California market. The property was acquired as one of three properties purchased by a borrower in a 1031 exchange. Although the subject is 100% leased to a national credit tenant, lenders were concerned about the “dark value” given the lease term is inside the 10 year loan termination date and the thin commercial market. 65% leverage was required in order for the Borrower to complete his acquisition of the other two properties in this exchange. The capital provider recently funded a similar transaction for a Tractor Supply and was comfortable with the probability that Tractor Supply will renew at lease expiration. The non-recourse, 5.20% fixed rate loan is amortized over 25 years. |
| | Rate: 5.20% | | Term: 10 Years | | Amort: 25 Years | | LTV: 65% | | Prepayment: Defeasance | | Non-recourse | | Lender Fee: Par | | Advisors: Stephen Stein, Teddy Stutz |
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| | | Transaction Description: | | $2,961,000 Sothern California Cash –Out Refinance for an In-Line Retail Center Raffi Sarkissian and Manuk Boyajian arranged the cash-out refinance of an unanchored retail center located in a Los Angeles suburb. The prior loan had matured with the existing lender and presented a small window to refinance and recapitalize the owner. Working with the lenders involved in the transaction, all deadlines were met while providing a return of equity. The non-recourse10 year term is fixed at 3.67%, amortized over 25 years. |
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| | | | More Bridge; More Leverage; More Hair Debt funds continue to reach to put capital to work on larger transactions. GSP identified a non-regulated fund advancing to 90% of total project cost in one-stop underwriting. Story deals are welcomed. Transactions from $15,000,000 are funded on core assets plus hospitality, medical office, self-storage and fractured condos for up to 5 year terms. Secondary markets are acceptable for non-recourse debt based on borrower experience and business plan. Coupons start at L+600 and up based on mezz-debt allocations if any |
| | | 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 | | | Speakers Corner | GSP President Steve Bram will be speaking at the 10th Annual Real Estate Syndication Summit at the LUXE Hotel in West Los Angeles on Saturday July 19th. Other guest speakers and registration information is available on-line | | | Pascale’s Perspective | Fed Minutes Fed Minutes indicated “the end” of quantitative easing is imminent, the final month of purchases is set for October (once thought to be December)…. Remember last summer when panic over Bernanke’s “taper talk” sent 10 year yields to nearly 3.00%? Would anyone have believed that as we are at the end of the actual tapering, the 10 year would be at 2.55%? What has happened in the meantime? A global “bond premium” as Japan and Europe continue to fight the specter of deflation with massive monetary easing. Recent US economic reports, although mixed, are pointing to a pick up in the 2nd half of 2014 (will we get to 3.0% GDP? Or is 2.5% the “new normal” for growth?) and rate hikes in early 2015. ….stay tuned… David R. Pascale, Jr. |
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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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