| Transactions of the Week |  | |  | | Transaction Description: | | Cash Out Multifamily Refinance Marc Schillinger successfully placed the fully-leveraged refinance cash-out of an Orange County multifamily property. The loan was rate-locked at application for 90 days. The borrower utilized a unique option that allowed him to re-lock the rate at the then lower 6.18% coupon just prior to close. The loan is fixed for the entire 15 year term and self-liquidates, mitigating all interest rate and balloon risk. | | | Rate: 6.18% | | Term: 15 Years | | Amort: 15 Years | | Lender Fee: Par | | Broker: Marc Schillinger | | | |  | | | | 12 Month Forward Commitments A national Life Insurance lender is funding forward commitments for up to 12 months on high quality assets. Transactions will range from $5,000,000 to $50,000,000, with a "sweet spot" of $10,000,000 to $30,000,000. Forward pricing offers the first six months free, with a 3 basis point spread premium per month up to the 12th month. Loans are sized to 60% of value, to 65% LTV by exception. Rates are extremely aggressive based on asset quality, offering an opportunity to mitigate a punitive pre-payment penalty while taking advantage of current fixed rates. | | | | Hot Money | 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. | | | 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. | | | 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. | | | Pascale's Perspective | Double Dip? Sovereign Credit Watch? The onslaught of weak data on housing, manufacturing, employment and consumer confidence paints a picture of the dreaded "double dip", sending investors into the "safe haven" of US Treasures. The 10 year yield is at its 2011 low, below 3%. Credit spreads for CMBS may widen, originators are still competing hard for good transactions. Europe: Germany, the EU and the IMF are showing support for another bailout for Greece, indicating that the market still is not ready for "restructuring" aka "controlled defaults". Washington: Talks on the debt ceiling continue. The best outcome for the markets may be an agreement to raise the ceiling with real structural deficit reform attached. This will allow auctions to continue and investors to have confidence that future budgets will require less bond selling. Stay tuned...... David R. Pascale, Jr. | |
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