GSPartners
|
|
|
|
Volume XXIII | No. 11 | March 25, 2015
|
|
|
|
|
|
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
3.25%
|
1 Month LIBOR
|
0.18%
|
5 Yr US Treasury
|
1.42%
|
5 Yr Swaps
|
1.56%
|
|
12-MAT
|
0.14%
|
3 Month LIBOR
|
0.27%
|
10 Yr US Treasury
|
1.93%
|
10 Yr Swaps
|
1.82%
|
|
11th Dist COFI
|
0.69%
|
6 Month LIBOR
|
0.40%
|
30 Yr US Treasury
|
2.51%
|
|
|
|
| | | Transaction Description: | | $6,983,000 Land Loan - 10 Day Close GSP successfully closed a land loan in ten days for entitled, raw, residential land in the Pacific Northwest. The Sponsor needed to refinance his existing loan which was coming due in 15 days and obtain additional time to sell this asset to various builders. No executed purchase LOI’s were on file by closing although numerous home builders demonstrated their interest in various parcels. GSP marketed this loan request to lenders on a Thursday and identified 2-3 interested lenders by Friday (the next day). The Sponsor and GSP negotiated with lenders on Monday and on Tuesday, the ultimate lender was selected based on their certainty of execution as applied for. The lender’s in-house engineer traveled to the site on Wednesday; documents were signed the following Tuesday and the loan funded on Thursday. Total time from application to funding was 10 calendar days. The Sponsor is a civil engineer and completed the original entitlements and engineering. The site required extensive grading and was approved for 1,050 homes, 1,060 apartments and 190 acres of commercial development. The 12 Month recourse loan has two, 3 month extensions. |
| |
|
| | | Transaction Description: | | $1,650,000 Acquisition Financing for 24 Unit Los Angeles Brick Apartment George Smith Partners successfully placed the acquisition debt for the purchase of a 24 unit, brick multifamily property located in Mid-City, Los Angeles. The 18,453 square foot Koreatown adjacent property was fully occupied, although one unit was used as a private office. Mr. Yazdi secured the term sheet and was able to close the transaction in less than 40 days. Sized to 75% of purchase and fixed for 5 years at 3.825%, the loan rolls to 6 Month LIBOR + 2.40% for the remaining 5 years of the term. The non-recourse loan offers 3 years of interest only before amortizing over 30 years with a prepayment penalty limited to the first 2 years of the loan; 2% in Year 1 and 1% in year 2. |
| | Rate: 3.825% | | Term: 3 Years IO; 30 Years Thereafter | | LTV: 75% | | Prepayment: 2,1, open | | Non-recourse | | Advisor: Shahin Yazdi |
|
|
| | | Transaction Description: | | 10 Day Close Auto-Body Repair Shop GSP arranged the bridge financing for the equipment build out of an auto-body shop in Covina, California. The Property was recently purchased all-cash following a 1031 exchange. The Sponsor, the single-tenant owner of the auto body shop needed working capital to purchase and install equipment required to run a full-service repair and restoration service. The entire process was 10 days from GSP’s introduction to funding. Sized to 50% of acquisition, the 18 month loan offers a six-month extension for an additional fee. Fixed at 7.9%, the loan is interest only for the term and option if exercised. There is no prepayment penalty beyond the one point exit fee. |
| | Rate: 7.90% | | Term: 18 Months + One 6 Month Option | | LTC: 50% | | Prepayment: 1 Point Exit Fee | | Lender Fee: 1 Point | | Advisor: Adam Candler |
|
|
| | | | 10-Year Fixed Portfolio Debt from 3.25% GSP identified a capital provider funding long-term, fixed rate, non-recourse debt from $4,000,000 to $20,000,000 on fully-stabilized California assets from 3.25%. Assets include core properties in addition to self-storage and single-family leased portfolios. Their flexible terms allows pricing to start in the low to mid 3% range on 10 years fixed with a 30 year amortization; sized to 60% of value. Six month forward rate locks may be obtained for a small spread premium. Self-liquidating 15-year fully amortizing loans are pried in the high-3% range. |
| | | 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 | Treasury Yields Drop Yet again on Economic News, Expectations of Fed’s Pace of Increases, etc…… The 10 year Treasury yield dropped as low as 1.87% this week, before climbing up to 1.93% today, despite a lackluster durable goods report. The report indicated a drop in business spending and investment. Equities dropped (Dow down almost 300) as this lowered investor expectations for 2015 first quarter GDP and earnings. Also, markets are still digesting last week’s Fed statement and some recent speeches by Fed officials. The consensus is not so much focused on the predicted first increase (“liftoff” in Fed speak), which is now moved from June to September; but the pace of increases. The Fed’s own prediction for year end 2015’s discount rate is 0.625%, down from December’s estimate of 1.125%. Last weeks’ new increasing “uncertain” Fed stance combined with other central banks tightening and/or loosening has caused a spike in currency volatility. This is creating a more difficult environment for efficient buying and selling of bonds. This inefficiency may have obviously unintended consequences for capital markets, etc…. …stay tuned… David R. Pascale, Jr. |
|
|
|
|
©2015 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of
George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
|
|
|
|
|
|
|
|
