FINfacts
  • Share

Finfacts XXIV – No. 412

April 4, 2024

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

    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.

Subscribe to
FINfacts Newsletter

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
By submitting this form, you are consenting to receive marketing emails from: George Smith Partners, 10250 Constellation Blvd., Ste. 2300, Los Angeles, CA, 90067, US, https://gspartners.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact.