Finfacts XXIV – No. 412 - FINfacts XXIV-412 | George Smith Partners

Market Rates

Prime Rate

8.50%

1 Mo. Libor

5.43%

3 Mo. Libor

5.56%

5 Yr SOFR Swap

4.09%

10 Yr SOFR Swap

3.96%

5 Yr US Treasury

4.34%

10 Yr US Treasury

4.35%

30 Yr US Treasury

4.50%

Recent Financings

Advisors

Matthew Kirisits
Director

Acquisition Bridge Loan for a Newly Constructed 10-Unit Multifamily Property in Florida

Rate:

10.25% fixed

Term:

9 months with one 3 month extension

Origination Fee:

1%

Guaranty:

Non-Recourse

Transaction Description:

George Smith Partners sourced an acquisition loan for a newly constructed 10-unit multifamily property in Florida. The borrower closed on the vacant property just after Certificate of Occupancy was received. Although the loan went into application several months ago, the seller was delayed in obtaining the C of O. Despite fluctuations in the capital markets, the lender held the fixed rate of 10.25%. The loan has a 9-month term with one 3-month extension option. A small interest reserve was structured to cover the initial payments while the property leases up.

Pascale’s Perspective

Volatility Week: Rates Whipsaw on Hot Manufacturing Data, Cooling Jobs Data

David R. Pascale, Jr.Senior Vice President

The 10-year Treasury has seen a volatile week: 4.19% on Monday to 4.43% Wednesday, now at 4.31% as markets await tomorrow’s big jobs report. Everything is magnified as the “data dependent” Fed is now 2 months away from the anticipated pivot date. Fed Speak of the week: we need “time for the clouds to clear” before cutting rates (Richmond Fed Pres Barkin).

Futures markets are at 71% for a June cut (up from 62% yesterday). Monday and Tuesday both saw hot manufacturing data as the sector went into expansion mode for the first time in over a year. Then rates cooled today on higher than expected jobless claims (which could have been affected by the early Easter holiday). On deck, the big 3: jobs report tomorrow, CPI Tuesday, PPI Wednesday. Stay tuned…

By David R. Pascale, Jr., Senior Vice President at George Smith Partners.

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