GSPartners
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Volume XXIII | No. 21 | June 3, 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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0.19%
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5 Yr US Treasury
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1.69%
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5 Yr Swaps
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1.83%
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12-MAT
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0.17%
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3 Month LIBOR
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0.28%
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10 Yr US Treasury
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2.36%
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10 Yr Swaps
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2.45%
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11th Dist COFI
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0.68%
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6 Month LIBOR
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0.43%
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30 Yr US Treasury
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3.10%
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| | | Transaction Description: | | $100,000,000 Refinance of 686,796 Square Foot Huntington Beach Lifestyle Center George Smith Partners arranged the $100,000,000 permanent loan for the 60 tenant Class A, retail center located in Huntington Beach, California. Tenants include Whole Foods, Regal Cinema, Kohls, Bed Bath Beyond, Old Navy and several national restaurants and boutique retailers. A significant renovation was initiated in 2005 prior to the Sponsors’ acquisition. Our client purchased and completed the final parts of the renovation and lease-up. The well located center has multiple ingress points and provides ample grade and structured parking. Retail tenants are set in a pedestrian friendly environment including outdoor entertainment space. Occupancy at funding was 98% consistent with the trailing historical occupancy. The transaction was a purchase & recapitalization between our Sponsor and a major institutional partner. The new partnership’s objective was to secure low leverage financing at the best fixed rate. Sized to 30% LTV, the new financing fixed at 3.41% and is interest only for the entire 10 year term. |
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| | | Transaction Description: | | $3,600,000 Acquisition for Unentitled Land to 80% of Purchase George Smith Partners successfully placed the acquisition financing of unentitled land for a to-be-built multifamily development near Culver City, California. The Subject is a three parcel assemblage zoned C-2, which allows for a residential development use, currently improved with a two duplexes and a single family home. Surrounding parcels are a mixture of multifamily and commercial. In-place revenue was not underwritten and only used as a compensating factor by credit in the approval of this transaction. Sized to 80% of the contracted purchase price, the 12 month loan is priced at LIBOR + 4.50% subject to a 6.5% floor. There is no prepayment penalty or exit fee for this recourse loan. |
| | Rate: LIBOR + 4.50% w/6.5% Floor | | Term: 12 Months + One - 6 Month Ext. | | Amort: Interest Only | | Recourse | | Lender Fee: 1.0% | | Advisors: Jonathan Lee, Adam Candler |
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| | | Transaction Description: | | Cash-Out Refinance of a Mixed-Use Commercial Asset George Smith Partners placed the cash-out refinance of a 7 unit retail and office building 100% occupied by non-credit tenants. The Ventura, California asset leases will roll during the 7 year loan-term, although the capital provider became comfortable funding the return of equity due to the historical occupancy and operational history. Sized to 65% of value, the loan is fixed for 5 years at 4.25% prior to floating at WSJ Prime + 0.50% and amortizes over 25 years with a step-down pre-payment. |
| | Rate: 4.25% | | Term: 7 Years | | Amort: 25 Years | | LTV: 65% | | Recourse | | Lender Fee: 1.25 | | Advisor: Shahin Yazdi |
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| | | | Non-Recourse Homebuilder Debt to 85% of Cost Homebuilder construction debt continues to re-enter the capital markets. GSP identified a fund offering middle market homebuilders up to 85% of cost on a non-recourse basis. Transactions from $5,000,000 are priced based on risk and builder profile but ranges from an 8% to 14% yield for transactions of 100 lots or less. Major metropolitan markets are considered for primary residences. Second home markets and resort areas will not considered. Mixed use and condominium development debt is available for this non-bank program. |
| | | 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 | Bond Yields Rise, Is this the great rotation? Markets may be “ahead of the Fed” …...The 10 year Treasury hit 2.36% today, a 7 month peak. Some of this is due to solid early economic reports for May (private sector employment, etc). But the major “game changer” this week was inflation ticking up in the Euro zone, finally quelling much of the deflation fears by their central bankers. This caused the German bond to hit 0.89% (remember it was in near negative territory 2 months ago). The ECB President, Mario Draghi, reaffirmed the bank’s commitment to QE, but noted the upward tick in inflation. He also hinted that the “full bazooka” of massive bond buying may be ebbing. The specter of a deal between Greece, creditors and the IMF is also contributing to the lack of demand for US Treasuries. The ultra-low Euro bond yields were acting as a “drag” on Treasury yields, signaling the potential end of relatively low US Treasury yields and a partial return to “normal. ...stay tuned... David R. Pascale, Jr. |
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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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