GSPartners
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Volume XXIII | No. 35 | September 9, 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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0.20%
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5 Yr US Treasury
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1.53%
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5 Yr Swaps
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1.58%
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12-MAT
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0.22%
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3 Month LIBOR
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0.33%
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10 Yr US Treasury
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2.20%
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10 Yr Swaps
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2.22%
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11th Dist COFI
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0.64%
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6 Month LIBOR
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0.54%
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30 Yr US Treasury
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2.96%
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| | | Transaction Description: | | $31,500,000 Refinance for a Private Non-Profit University GSP arranged $31,500,000 in permanent financing for a private, non-profit University. The new debt refinanced an existing loan that was originally used to purchase and improve the campus. A regional bank that has financed numerous non-profit educational facilities was quickly identified. Their experience added certainty of execution given the fluctuations in income as a large percentage of their revenue comes from gifts and grants, not just tuition. The tuition cash flow alone did not support the loan request. This capital provider is also able to provide construction financing for future development if the school chooses to add additional improvements to their campus. A 15 year term with a rate reset after the 10th year for the remaining 5 year term provides for flexibility while postponing balloon risk. Fixed for 10 years at 4.0% before the rate reset in year 11, the loan amortizes over 30 years and is full-recourse to the operating University. There is no pre-payment penalty during the term of the loan. |
| | Rate: 4.0% Fixed for 10 Years; Then T+2.0% | | Term: 15 Years | | Amort: 30 Years | | Prepayment: None | | Recourse | | Advisors: Steve Bram, Allison Higgins |
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| | | Transaction Description: | | $11,590,000 Acquisition & Refinance for Portfolio of Texas Class C Multifamily George Smith Partners arranged $11,590,000 financing for a four-property, 240 unit portfolio of Class C multifamily properties in Austin, Texas. The experienced Sponsor requested financing tailored to each property and transaction’s unique characteristics. GSP identified two lending partners with programs that would complement the business plan. The assignment ranged from refinance of stabilized assets with full cash out proceeds to acquisition financing of recently repositioned assets that lacked a stabilized historical cash flow. Loans were sized to 75% LTV and 1.25 DCR and are non-recourse to the Borrower. Rates ranged from 3.80% to 4.73% and up to 5 years of interest only payments. |
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| | | | National Small Balance On-Book Non-Recourse Multifamily Lender GSP identified a non-agency portfolio lender advancing to 75% of appraised value for stabilized multifamily units nationwide. The non-recourse loans are held on-book and not securitized or sold in the secondary market. Transactions from $1,000,000 to $5,000,000 are priced over 3, 5, and 7 year treasuries. A ten year term is available with a five year rate reset. Flexible pre-payment penalties are structured with step-down for the first half of the term and open without penalty the second half of the term. |
| | | 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 | | | Speakers Corner | Founding Principal Steve Bram will be speaking at the REIS Los Angeles Breakfast on Wednesday September 16th at the Luxe City Center Hotel from 8 to 10am. Attendees may register and obtain more information about the breakfast via on-line registration |
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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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