GSPartners
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Volume XXIII | No. 38 | October 7, 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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1.37%
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5 Yr Swaps
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1.41%
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12-MAT
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0.24%
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3 Month LIBOR
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0.32%
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10 Yr US Treasury
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2.06%
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10 Yr Swaps
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2.04%
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11th Dist COFI
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0.64%
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6 Month LIBOR
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0.53%
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30 Yr US Treasury
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2.89%
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| | | Transaction Description: | | $40,000,000 Joint Venture San Diego Luxury Condominium Development GSP successfully structured the $40,000,000 Joint Venture Equity for ground-up development of The Park, an ultra-luxurious condominium development in the Banker's Hill section of San Diego. Located adjacent to the world famous Balboa Park - home to many of San Diego's cultural elements & museums - the project is one of only a few new condominium projects to break ground in San Diego since the market downturn. Boasting large floor plates and 500 square foot terraces, the Subject is designed and intended for very discerning clientele. The project includes direct elevator access to most of the units with views of downtown, San Diego Bay and Balboa Park. Culminating over two years, a significant amount of time was invested with this Developer to create the strategies to complete the capitalization of the project. With this final piece of capital, the project is now fully capitalized and will be embarking on vertical construction. Terms are confidential. |
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| | | Transaction Description: | | $7,035,000 71 Unit Multifamily Hollywood Acquisition GSP placed the senior acquisition loan of a 71 unit, brick, multifamily building in Hollywood, California. Trailing 12-month operating expenses initially limited underwritten proceeds; however, GSP demonstrated the Sponsor’s operational efficiencies with similar properties and justified a reduction in post-close operating expenses. Sized to 70% of the purchase price and fixed for 5 years at 3.875%, the 10-year loan will float the remaining 5 years at LIBOR + 240. Three years of Interest Only is followed by a 30 year amortization schedule with a 2,1, open step-down prepayment. The loan was closed in 60 days. |
| | Rate: 3.875% | | Term: 10Years | | Amort: 3 Years IO; 30 Years Thereafter | | LTC: 70% | | DCR: 1.20 | | Prepayment: 2,1,0 | | Recourse | | Lender Fee: Par | | Advisors: Shahin Yazdi, Jeremy Michaelson |
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| | | Transaction Description: | | $3,930,000 Bridge/Acquisition for Venice Beachfront Retail GSP successfully placed the $3,930,000 bridge loan for the acquisition of a beachfront retail building located in Venice, California. A high value per square foot limited most lenders to 50% leverage or less. The sponsor’s Joint Venture agreement stipulated a minimum 60% of purchase price for the acquisition loan. GSP identified a regional bank that stretched to 60% LTC supported in part by the strength of the Sponsor’s development experience and balance sheet. The three-year term loan is interest only and fixed at 4.25% for two years before floating at .50% over WSJ Prime. |
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| | | | Portfolio Lender Float-to-Fixed with Flexible Prepayment GSP identified a portfolio lender funding fixed rate loans from $5,000,000 to $50,000,000 in the Western United States. Sized to 75% of value, ten year term floating rate loans start at 3.25% with the ability to fix the rate, at any time, for 5 years during the initial term. A stepdown prepayment is offered during the fixed rate period, offering borrowers the availability of today’s low floating rates with the security of a future fixed coupon while maintaining prepayment flexibility. Core asset classes and medical office are considered. |
| | | 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 Gary M. Tenzer will be moderating the Inside the Deals with Agency Lenders panel at the RealShare Aparment Conference on October 21st. More information and registration for the Los Angeles Westin Bonaventure event is available on-line | | | Pascale’s Perspective | Treasury Auction, Rating Agencies Today’s $21 billion auction of new 10-Year Treasury Notes went well; solid demand, the 10-year closed at 2.06%. Interesting change in the foreign buyer profile. Central Banks (especially China) were big buyers in recent years. In recent months, as the commodities plunge hit emerging market currencies hard, many Central Banks are selling treasuries to prop up their home currencies. But foreign private investors have dramatically increased their buying searching for a safe haven. Much attention was paid to the recent 3-Month Treasury auction with a yield of 0%, indicating more safe haven sentiment. Many of these buyers do not want to be holding cash from their home currencies, definitely a risk-off trade. Last week’s jobs report puts the Fed in a further quandary as data is still mixed with some fear that a hike too soon may shock the system, but they are also concerned that the Fed risks losing credibility if they wait too long. CMBS: Spreads spiked about 10-20 bps this week as bond buyers are increasingly concerned with rating agency issues. More on this next week …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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