GSPartners
|
|
|
|
Volume XXII | No. 45 | December 3, 2014
|
|
|
|
|
|
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
3.25%
|
1 Month LIBOR
|
0.15%
|
5 Yr US Treasury
|
1.61%
|
5 Yr Swaps
|
1.74%
|
|
12-MAT
|
0.11%
|
3 Month LIBOR
|
0.23%
|
10 Yr US Treasury
|
2.28%
|
10 Yr Swaps
|
2.41%
|
|
11th Dist COFI
|
0.67%
|
6 Month LIBOR
|
0.33%
|
30 Yr US Treasury
|
2.98%
|
|
|
|
| | | Transaction Description: | | $15,900,000 Adaptive Re-Use of the Maxfield Building to a 96 Unit Live-Work Apartment Complex GSP successfully arranged the $15,900,000 reposition loan for the adaptive re-use of the Los Angeles Maxfield Building to a 96 unit live-work apartment complex and three commercial units. Downtown Los Angeles’ Fashion District long established as the premier shopping destination for trend-setting designs, continues to evolve as a residential community for younger urbanites. Post renovation, residential units will be luxury loft style units with amenities to include a re-modeled lobby, fitness center, rooftop open space with Jacuzzi, bicycle parking, and balconies with patios for select units. Several 12th floor units will include a “pop-up” addition; creating two-level penthouses, each with a private patio or balcony. Floating over LIBOR at 2.15%, the interest only loan will advance 78% of the total capitalization. Personal recourse is limited to the top 50% of the loan. |
| |
|
| | | Transaction Description: | | $4,860,000 Post-Construction Van Nuys Multi-Family Refinance Jonathan Lee arranged permanent financing for the construction take-out of a recently stabilized 23-unit apartment building in Van Nuys, California. The property received certificate of occupancy in July and was in lease-up when GSP was engaged. A $1,000,000 return of equity was advanced up and beyond the construction loan balance based on 30 days of stabilized occupancy. |
Challenge: The Sponsors were challenged to stabilize the property to pro-forma rents within a short timeframe to meet the construction loan balloon date. A return of equity was requested for unrelated future development projects. |
Solution: GSP showcased the strength of the newly constructed project through lease-up velocity, achieved rental rate targets, and successful management. These metrics allowed the Lender to become comfortable with the leverage point on a newly constructed, unseasoned asset in addition to the return of equity. |
| |
|
| | | Transaction Description: | | $1,950,000 Multifamily Cash-Out Refinance GSP successfully placed the refinance of two 16-unit Los Angeles apartment rentals while recapitalizing the Sponsor for prior cash outlays. Two new loans were arraigned, both fixed for 12 years at 4.85%, amortized over 30 years on a non-recourse basis. Constrained by a 1.55 DCR and 55% LTV, the new loans retire the existing debt and allowed the Sponsor to recoup monies invested on renovations. A death in the family triggered a series of events requiring a distribution of assets that complicated the organizational structure. GSP worked closely with the Lender, Sponsor, title and escrow to insure all requirements were satisfied prior to rate lock and funding. |
| | Rate: 4.85% | | Term: 12 Years | | Amort: 30 Years | | LTV: 55% | | Prepayment: Yield Maintenance | | Non-recourse | | Lender Fee: Par | Advisor: Jason Gaffner
|
|
|
| | | | California Bank with Life Company Pricing from $2,000,000 George Smith Partners identified a California Bank with a Life Company mentality. The capital source's conservative credit culture allows them to price aggressively, often undercutting more arduous Life Company applications and processing. Ten-year transactions to 60% LTV sized from $2,000,000 to $25,000,000 are priced from 3.85% fixed, and may offer stepped-down prepayment options. Loans post-funding are not sold or SWAPed to derivative capital suppliers. Geographic lending markets consist of major California MSAs. Non-recourse financing is available for higher quality assets. |
| | | 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 | Yield Curve Flattening…. The 10 year yield treasury rose slightly this week after dipping to 2.17% last week, closing at 2.28% today. The yield curve is flattening, partially due to inflation or the lack thereof. The shorter term (2 and 5 year Treasury) yields are rising on recent positive economic news (manufacturing, payrolls), however, much of the manufacturing performance rise is due to rapidly falling oil prices. This combined with a stagnant wage inflation environment is keeping the longer (10 and 30 year Treasury) yields from rising commensurately. The result is the yield difference between the 10 and 5 year treasuries hit a 6 year low while the difference between 10 year Treasury and 10 year TIPS (inflation indexed) also hit a multi-year low. …stay tuned.... David R. Pascale, Jr. |
|
|
|
|
©2014 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
