| | | | | Transactions of the Week |  | |  | | Transaction Description: | | $11,000,000 Acquisition / DPO Senior Loan for Multifamily in Los Angeles The Sponsor required an $11,000,000 quick-close acquisition loan to finance the discounted pay-off (DPO) of a vacant 170-unit, high-rise apartment building in Los Angeles. The DPO had to close in less than 30 days. GSP identified a regional bank comfortable with the project's history and business plan. The project was previously vacated and stalled over two years ago when the prior lender was seized by the FDIC. GSP arranged a phased loan in which the $11,000,000 DPO component closed on time. The same institutional lender intends to subsequently refinance this loan with a $25,000,000 non-recourse construction loan to fund the heavy renovation and lease-up at attractive rates. | | | | |  | | | | Regional Bank to $10,000,000 A West Coast regional bank is aggressively pricing for multifamily, mixed-use, and mobile home park transactions. They are also funding industrial and office loan requests. Transactions range from $1,000,000 to $10,000,000, on 3, 5, 7, and 10 year fixed rates before rolling into a floating rate at 225 over LIBOR for the balance of the 30 year loan term. Non-recourse is available for an additional 25 basis points. Loans are sized to 75% of value with a minimum 1.15 debt coverage for multifamily. All loans self-liquidate, amortized over 30 years. | | Transaction Size: $1,000,000-$10,000,000 | | Rate: 3, 5, 7, 10 Year Fixed | | Amort: 30 Year | | Max LTV: 75% | | Min DCR: 1.15 | | Property Types: Multifamily, Industrial & Office | | Prepayment: Step-down | | | | | Hot Money | Public REIT Bridge Lender to $25,000,000 A public mortgage REIT is actively originating bridge financing between $7,000,000 and $25,000,000 to 80% of cost. This national lender is active in secondary markets, and prefers multifamily, but will consider office, retail, industrial and hospitality with a major flag. Student housing and broken condos converted to rentals are also considered. Some cash flow is required but the lender will fund a debt service reserve in addition to capital upgrades. A 2 year term is offered with three - 1 year extensions. This capital provider will also provide mezzanine debt behind Fannie or their own senior debt up to 90% of total capitalization. | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing or advisory services, please contact your GSP representative or Todd August, Chief Operating Officer at (310) 867-2995 or TAugust@GSPartners.com. | | | Speakers Corner | Founding Partner Steve Bram will be a panelist at the Commercial Loan Workout Symposium sponsored by The Investor Education Institute. The all day event will be held at the Four Season Hotel Beverly Hills on Tuesday, July 6th, from 8:30am-5:30pm. The symposium will review the latest strategies and secrets to save commercial property from foreclosure. For registration, go to http://clwsymposium.eventbrite.com and enter "GSP" for a 30% discount. | | | Pascale's Perspective | Fed "Stands Down" Today, the Federal Reserve confirmed QE2's imminent conclusion with no new stimulus planned. The Fed's position leads to several key questions: 1) Is the Fed "out of arrows" after almost three years of near zero percent rates and $600 billion in bond buying? 2) Will markets function better without Fed involvement? 3) Is it finally time to reduce the Fed's balance sheet? Stay tuned... David R. Pascale, Jr. | | | Join Us On LinkedIn | George Smith Partners is now on LinkedIn. Click here to join the George Smith Partners Group and gain access to current commercial real estate topics and conversation. | |
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