Finfacts XXIV – No. 455
April 11, 2025Market Rates
Recent Financings
-
Advisors
Gary M. Tenzer
Senior Managing Director & Principal / GSP Co-Founder
Senior Loan Terms (Refinance):
Loan Amount: $168,341,000
DSCR: 1.25x
Term: 5 Years
Interest Only: 3 Years
Amortization: 35 Years
Rate: 5.27%
Spread: 1.03% (inclusive of a 2% buydown – 38 bps rate savings)Loan Terms (Supplemental Loan):
Loan Amount: $20,475,000
DSCR: 1.35x
Interest Only: Full Term
Amortization: 30 Years
Rate: 7.35%
Spread: 3.29%$168,341,000 Senior Financing and $20,475,000 Supplemental Loan
Transaction Description:
George Smith Partners successfully advised on the placement of two strategic agency financings, reinforcing our commitment to affordability and efficient capital solutions.
Senior Financing – The 776-unit townhouse style property provides a vital affordable housing community. Located in Southern California, the property has an outstanding 97% Mission Score. GSP advised on the placement of a $168,341,000 refinance with a 5-year fixed rate, 3 years of interest-only payments, and a 35-year amortization. The financing, executed at a 1.03% spread, included a 2% buydown, delivering 38 bps rate savings to the Sponsor.Supplemental Financing – GSP advised on the placement of a $20,475,000 supplemental loan on a 752-unit, garden style, apartment property located in Southern California. The financing provided the Sponsor with added capital under competitive terms. The loan was structured as full-term interest-only with a 3.29% spread.
These transactions highlight GSP’s ability to navigate complex capital markets, optimize financing terms, and support long-standing clients in their mission to provide accessible housing.
Pascale’s Perspective
-
“New Normal” reiterated by today’s price action
The Federal Reserve announcement today was closely watched due to yesterday’s .4% CPI print; showing the biggest cost of living increase since February 2013. This may cause inflation “hawks” to push for raising the federal funds rate. Today’s adroit message at the press conference with Chairperson Yellen caused both debt and equity markets to rally. The ten year yield closed at 2.58% after hitting a high this week of 2.66%. The old pre-crisis paradigm of an inverse relationship between debt and equity markets no longer exists. Both markets rallied as the Fed slashed GDP growth forecasts downward to 2.1-2.3%; from 2.8-3%. This less robust forecast mirrors the IMF’s recent downward revision to 2%. The projection in US economic growth suggests that the Fed is “nowhere near raising short term rates”. Bond and equity markets were bid as they react more to possible future stimulus than they do to price/earnings fundamentals. The overall debt market rally is a boon to the competitive CMBS market as spreads continue to compress with full leveraged rates available to borrowers. …stay tuned… David R. Pascale Jr. & Matt Kerchner
Subscribe to
FINfacts Newsletter
"*" indicates required fields
