FINfacts XXIV – No. 471
September 11, 2025Market Rates
Recent Financings
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Advisors
Steve Bram
Senior Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Director
Nick Rogers
Vice President
Rate: 5.40% (locked at floor rate)
Term: 5 years
Amortization: Interest Only
LTV: 40% of appraised value
Prepayment: Yield maintenance with 1% minimum; open at par 3 months prior to maturity
Guaranty: Non-recourse with standard carve-outs
Origination Fee: $10,000
$10,500,000
Transaction Description:
George Smith Partners successfully closed $10,500,000 in acquisition financing for a self-storage facility in Los Angeles County, California. The transaction involved the purchase of an institutional-quality self-storage asset in a high-growth suburban market north of Los Angeles. GSP arranged acquisition financing with favorable terms including a competitive rate, flexible prepayment options, and a lender that wanted to grow their relationship with the client. The lender recognized the Sponsor’s proven track record in self-storage operations and the strong fundamentals of the Los Angeles County market. Despite challenging capital market conditions, GSP leveraged its deep institutional relationships to secure attractive permanent financing for this acquisition.
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Advisors
Gary M. Tenzer
Senior Managing Director & Principal / GSP Co-Founder
Jordan Lipton
Senior Vice President
Total Proceeds: $69,000,000
Loan Term: 10-Year Fixed Rate with 5 Years Interest Only.
Index: 10-Year Treasury
Spread: 0.73%
All-In Rate: 5.11%
LTV: 70%
DSCR: 1.20x
Amortization: 35-Year
Rate Buy Down: 3.0%
$69,000,000
Transaction Description:
George Smith Partners successfully advised on $69,000,000 of permanent financing from Freddie Mac for the refinance of a 335-Unit multifamily property located in Downtown Los Angeles, CA. Through GSP’s correspondent relationship, GSP was able to secure favorable terms for the Sponsor and close within 60 days. This phase of the property was built in 2011 and features over 254,000 of net rentable square feet with amenities shared between the first phase of the property, acting as one cohesive community conjoined by a bridge.
Pascale’s Perspective
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Rate Cut: Soda Pop?
By Annie Lai, Analyst
Jobs Data Shocker Shakes Markets
Last Friday’s jobs report delivered a real curveball: just 25K new jobs, well below the market consensus of 75K. The 10-year Treasury yield took a nosedive, dropping 11 basis points to 4.07%, and rate cut expectations jumped from two cuts to three by year-end.
This is the first jobs report since the previous BLS leader got the boot for those messy downward revisions. Despite all the criticism about their data collection methods, the BLS has stuck with the same methodology, at least for now.
This Tuesday, the BLS issued a disappointing revision: 12-month job growth was marked down by 911,000 through March 2025. The market reaction was relatively muted. The clouds had already been on the horizon. However, the revision will provide more impetus for the Fed to cut rates.
On Wednesday, PPI came in cool at -0.1%, a precursor to CPI. The print again suggested that the impact of tariffs remains marginal (for now), as producers continue to draw down previously stocked inventories. Regardless of tomorrow’s CPI print, market reaction is likely to remain subdued as a 25bp rate cut on September 17 is now all but locked in, with 10% even betting on a jumbo 50bp move.
Markets don’t repeat themselves, but they do rhyme. With 10-year Treasury sinking to year-to-date lows, markets are pricing in tomorrow’s Fed move. That makes this a prime window to lock in fixed rates or refinance. Remember last September? The Fed hesitated, and then finally cut 50bp. Instead of easing conditions, the market “sold the news” and the 10-year Treasury yield surged 100bp in just three months.
In the longer term, U.S. fiscal spending spree isn’t slowing down, which means more debt and, eventually, upward pressure on the yield curve. Strike while the iron’s hot, before the soda pop fizzles out.
Source: CME
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