GSPartners
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Volume XXIII | No. 12 | April 1, 2015
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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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0.18%
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5 Yr US Treasury
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1.32%
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5 Yr Swaps
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1.48%
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12-MAT
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0.14%
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3 Month LIBOR
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0.27%
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10 Yr US Treasury
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1.86%
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10 Yr Swaps
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1.93%
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11th Dist COFI
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0.69%
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6 Month LIBOR
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0.39%
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30 Yr US Treasury
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2.47%
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| | | Transaction Description: | | $8,125,000 Acquisition Bridge Loan for Unentitled Land GSP successfully arranged an institutional $8,125,000 acquisition bridge loan for an unentitled, three acre site in the Koreatown neighborhood of Los Angeles. The loan allowed the Sponsors to acquire and entitle the land for construction of 225 apartment units. The current use of the site was obsolete so lenders had a difficult time getting comfortable with the unentitled status of the property since there was no fall back use. While most capital providers were pricing around 9% given the risk to entitling, GSP identified an institutional lender that was comfortable in the Sponsor’s business plan given his successful track-record. Fixed at 5.0% for 18 months, the 50% of purchase price loan is full recourse to a warm body. There is no prepayment penalty or exit fee. |
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| | | Transaction Description: | | $2,800,000 Multi-Family Construction Financing to 78% of Cost Jonathan Lee arranged the ground-up construction financing for an 8 unit multi-family rental building in Studio City, California. The project is a four-story structure, primarily composed of three-bedroom units that will feature underground parking and open floor plans ranging from 1,100 to 1,250 square feet. The project is located near public transit, freeways, good schools, and the entertainment employment hub. Poised to draw residents that desire a walkable neighborhood, the subject will have foot-access to entertainment industry employers and boutique retailers. Sized to 78% of cost, the 18 month loan is priced at WSJ Prime + 1.00% with a 5.50% floor rate. |
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| | | Transaction Description: | | Construction Financing for Retail Strip Center on a 35 Year Land Lease George Smith Partners successfully sourced the 70% of cost debt for the ground up construction of a multi-unit retail center located in South Los Angeles. Our client owns the leasehold interest in the land but holds an option to purchase the dirt at any time. Half of the retail units were preleased at close of escrow. Floating at WSJ Prime + 1.00%, the loan carries a 5.25% floor. The sponsors prior successful projects and strong development resume mitigated light liquidity and ground lease concerns. The fee purchase option upon development completion is anticipated to maximize imputed equity once built, leased and stabilized. |
| | Rate: Prime + 1.0% | | Term: 18 Months | | Amort: Interest Only | | LTC: 70% | | Recourse | | Advisors: Shahin Yazdi |
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| | | | National Non-Recourse/Non-CMBS Perm GSP identified a capital provider funding mini-perm and long-term fixed rate debt from $3,000,000 to $10,000,000 in all fifty states with step-down prepayment schedules. Maximum leverage is to 75% loan-to-value on stabilized multi-family and 70% on other core CRE asset types including self-storage. Recourse may be required over 65% loan-to-value. This capital source actively underwrites tertiary markets. Interest rates are quoted 220 to 250 basis points over their corresponding swap index, with amortization up to 30 years. |
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©2015 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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