| Transactions of the Week |  | |  | | Transaction Description: | | $2,600,000 Fixed-Rate Acquisition of a 31 Unit San Fernando Valley Apartment Building. Shahin Yazdi arranged the $2,600,000 self-liquidating acquisition loan for a 31-unit, stabilized multi-family property. The loan provides for a 10 year fixed term at 6.02% before rolling into a floating rate loan for the remaining life of the loan. The floating term is priced at 6 month LIBOR plus 2.75% after the 10 year fixed rate period. The borrower locked rate at application to secure loan proceeds in the event of a rate spike. Just prior to close, interest rates fell significantly. GSP worked with the lender to allow the borrower to re-lock at the then lower market rate in exchange for a small portion of the borrower's rate lock deposit. | | | Rate: 6.02% | | Term: 30 Years | | Amort: 30 Years | | LTV: 75% | | DCR: 1.25 | | Broker: Shahin Yazdi | | | |  | | | | Mezzanine and Equity Funds A national fund is providing short and long term [one to 10 years] mezzanine debt to 90% of total capitalization down to a 1.05 dcr. The mezz may be paid current or accrued depending on the business plan. Transactions will range from $4,000,000 to $40,000,000 and carry a 9% to 12% coupon. All product types including hospitality and student housing will be considered. The same capital provider is also offering Joint Venture funds for "value-add" turn-around assets for a three to five year hold. Multifamily is preferred although office and retail projects will be underwritten as well. Investor DPOs are also funded with as little as 5% new cash equity. | | | | Hot Money | Life Company Bridge & Perm Debt A national Life Insurance lender will fund transition properties down to a 1.10 dcr on an interest only basis. The three year non-recourse loan will advance to 75% of current value, fixed from 5.25%. Longer permanent term loans are also available with 5, 7 and 10 year call dates. Transactions will range from $20,000,000 to $50,000,000 and may include special purpose products including hospitality, high-end health clubs and self-storage in addition to the four major uses. | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, asset sales or advisory services, please contact your GSP representative or Todd August, Chief Operating Officer at (310) 867-2995 or TAugust@GSPartners.com. | | | Pascale's Perspective | Europe and more: The "fear factor" is back as troubling news items from Europe spook the markets: huge controversy on how to handle Greece (restructure is favored by Germany, opposed by ECB), and downgrades to formerly "safe" countries such as Belgium and Italy. US economic reports continue to reflect a slowing economy or the "new normal" or a "double dip". Some economists point to the weather as a reason for weaker than expected manufacturing reports. Only time will tell. All this has led to a flight to quality, pushing Treasury yields to approach their lowest levels of 2011. CMBS and other credit spreads are "softening" and/or widening slightly as the flight to quality always indicates less appetite for risk... of course all-in loan rates are still very attractive. Stay Tuned.... David R. Pascale, Jr. | | | Come Grow With Us | George Smith Partners is expanding its team of top-notch mortgage brokers/originators. We offer highly competitive compensation and an excellent environment in which to work, learn and be supported. We invite you to consider a career with George Smith Partners. Please direct confidential inquiries to Todd August, Chief Operating Officer, at (310) 897-2995. | |
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