GSPartners
|
|
|
|
Volume XXIII | No. 24 | June 24, 2015
|
|
|
|
|
|
|
|
|
|
KEY RATE INDICES
|
|
Prime Rate
|
3.25%
|
1 Month LIBOR
|
0.19%
|
5 Yr US Treasury
|
1.67%
|
5 Yr Swaps
|
1.83%
|
|
12-MAT
|
0.17%
|
3 Month LIBOR
|
0.28%
|
10 Yr US Treasury
|
2.37%
|
10 Yr Swaps
|
2.49%
|
|
11th Dist COFI
|
0.68%
|
6 Month LIBOR
|
0.45%
|
30 Yr US Treasury
|
3.15%
|
|
|
|
| | | Transaction Description: | | $22,700,000 Non-Recourse Cash-Out Refinance for an Unanchored Houston Retail Center George Smith Partners arranged the $22,700,000 permanent loan for the cash-out refinance of an unanchored retail center just outside of Houston, Texas. The largest tenant is a high-quality, non-credit medical office user. Over $10,000,000 of cash equity was recaptured for investments into alternative commercial real estate acquisitions. Secondary market conditions and lack of asset credit tenancy was mitigated by the historical high occupancy during the down-turn. Sized to 75% of appraised value, the 10 year loan offers two years of interest only prior to amortizing over 30 years for the remainder of the term. |
| |
|
| | | Transaction Description: | | $16,500,000 Odessa Apartment Refinance; 3.0% Fixed for Seven Years GSP successfully arranged the $16,500,000 permanent loan for a 328-unit apartment community in Odessa, Texas. The subject was recently constructed and has solid occupancy with strong cash flow. This transaction was the third financing since the beginning of the year between this Borrower and Capital Provider. The Borrower is a significant apartment owner and maintains strong relationships with a variety of institutional lenders including the Agencies, insurance companies and banks. GSP successfully identified a new long-term fixed-rate, non-recourse lender that provides a very competitive interest rate with a refreshingly painless closing process and simple loan documentation. The lender locked rate shortly after application at no additional cost and does not require reserves or impounds, allowing the client to manage their own property. A step-down prepayment penalty and the ability to partially pay-down the loan without penalty was provided at no additional spread to the coupon. Outstanding documentation, a holdover from the construction financing, was mitigated with a personal guarantee that will burn-off once satisfied rather than structuring a financial holdback or a delay of funding. Fixed for 7 years at 3.0%, the self-liquidating loan will reset for a second – 7 year term. |
| | Rate: 3.0% Fixed for 7 Years | | Term: 14 Years | | Amort: 14 Years | | LTV: 35% | | Prepayment: 5,4,3,2,1,0,0 | | Non-recourse | | Advisor: JJay Brooks |
|
|
| | | Transaction Description: | | $3,840,000 Pre-Payable Fixed Rate Cash-Out Hospitality Refinance Ameet Chagan placed the $3,840,000 refinance of a 50 unit Holiday Inn Express in Northern California. The Borrower requested favorable long-term fixed rate financing, but insisted on a flexible prepayment option that would have precluded a CMBS execution. GSP identified a regional portfolio lender with an allocation for hospitality and was comfortable with a structure that included a $600,000 return of equity despite volatility in the debt market. When the lender-ordered appraisal indicated the market value was significantly higher than projected at application, GSP negotiated an additional $140,000 of proceeds above the applied for loan amount. Fixed for 7 years at 4.25%, the loan will float the remaining three years of the ten year term. Prepayment steps down from 5% in year one; there is no lock-out. |
| | Rate: 4.25% Fixed for 7 Years; L+275 | | Term: 10 Years | | Amort: 25 Years | | LTV: 60% | | Prepayment: 5,4,3,2,1,1,1 | | Recourse | | Lender Fee: 0.5% | | Advisor: Ameet Chagan |
|
|
| | | | National Non-Recourse Bridge Debt Starting at 4.75% GSP identified a national portfolio lender funding bridge transactions from $10,000,000 to $50,000,000 on a non-recourse basis. Constrained to 70% loan-to-cost pricing will start at 4.5% over LIBOR for assets on all major asset classes including single-family residential portfolios and infill entitled land. Below break-even cash flows are underwritten with an interest reserve. |
| | | 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 Archive - June 2010 | As Mr. Pascale is taking a well-deserved day off, we thought we would reach back five years into the archives and revisit his perceptive from June 23, 2010. A Return to a Normal Housing Market… Action packed day (Wednesday): First off, US new home sales plunged 33%, sinking to their lowest level since 1963. The drop was larger than expected. This is partly due to "training wheels coming off" as the government tax credit for buyers has expired. Sooner or later, the private markets need to stand on their own and this is part of "taking the hit" and a necessary but painful part of returning to a normal housing market. Then the Fed announced (again) that it will keep rates low for "an extended period." The Fed futures market is now predicting rock bottom rates until mid 2011, with some commentators speculating that it won't come until late 2011 or even 2012. Factors in the decision include: (1) European debt crisis (2) Recent lackluster jobs and housing reports, and (3) Very low inflation (and indeed deflation in some categories). ....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.
|
|
|
|
|
|
|
|
