| Transactions of the Week |  | |  | | Transaction Description: | | $13,695,000 Acquisition / Permanent Financing for Multi-Family Complex in Moreno Valley, CA GSP successfully arranged a $13,695,000 seven year, fixed rate loan to acquire a distressed multi-family asset in the Inland Empire. The property was lender-owned at acquisition and had three different property managers in 2010. As a result, the property suffered from a high tenant delinquency and economic vacancy rate. Based on the buyer's experience owning and operating multi-family assets, George Smith Partners identified a lender that recognized the property would rebound under new, hands-on ownership and management. Despite the lack of reliable historical operating history, GSP was able to secure maximum leveraged proceeds that offered three years of interest only debt service before rolling into a 30 year amortized schedule. | | | Rate: 5.01% | | Term: 7 Years | | Amort: 3 Years Interest Only Then 30 Years | | LTV: 75% | | Prepayment: Yield Maintenance | | Lender Fee: Par | | Brokers: Steve Bram, Allison Higgins | | | |  | | Transaction Description: | | $2,300,000 Cash-Out Loan Shahin Yazdi arranged the 100% cash-out refinance of a 40 Unit Multi-Family Property in Southern California. The high quality of the asset and borrower strength allowed GSP to streamline the loan process and arrange the loan in less than 45 days from application to close. The borrower required a self-liquidating loan that precluded all balloon risk. The loan is fixed for 5 years at 4.25% before converting to an adjustable rate for the remainder of the term. | | | Amount: $2,300,000 Rate: 4.25% Fixed: Yes Term: 30 Years Amort: 30 Years Recourse Lender Fee: Par | | | |  | | | | National Life Insurance Company Debt Financing to $125,000,000 A national life insurance company is aggressively funding moderate leveraged Class A multifamily and commercial assets between $8,000,000 and $125,000,000 to 65% LTV. The multifamily loans are priced at T+140 fixed for 10 years. Commercial spreads are 25 bpts wider. All loans are rate locked at application, and offer 30 year amortization on a 30/360 basis. Forward commitments are available up to 12 months prior to funding. Lower leveraged transactions may qualify for 5 years of interest-only before amortizing over 30 years for the balance of the term. | | Transaction Size: $8,000,000-$125,000,000 | | Rate: T+140 Fixed (+25 bpts Commercial) | | Loan Term: 10 Year | | Amort: 30 Years | | Max LTV: 65% | | Property Types: Multifamily, Retail, Industrial, Office | | | | | Hot Money | 2.59% Floating Rate to 1.05 Debt Coverage for Multifamily A national capital provider is funding multifamily floating rate loans as low as 2.59% and 1.05 DCR for transactions as small as $3,000,000. There is no maximum loan amount and smaller assets will be considered on a case-by-case basis. This non-recourse loan floats over one-month LIBOR and carries a lifetime cap fixed at closing. The loan is locked for one year then requires a 1.0% prepayment penalty. The seven year term is amortized over 30 years with lower leveraged loans qualifying for interest only. The loan may be converted to a fixed rate in years 2 through 5 with no prepayment costs and minimal re-underwriting. | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer, at (310) 867-2995 or TAugust@GSPartners.com. | | | 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. | | | Pascale's Perspective | Debt Ceiling..... Even as glimmers of hope emerge today regarding the debt ceiling drama, the "unthinkable" is beginning to be considered. Consequences of a default and/or downgrade in the US credit rating could include: (1) Interest rate hikes across the entire credit spectrum; (2) Downgrades and increased spreads for Fannie Mae/Freddie Mac residential and commercial mortgages; (3) Automatic downgrades and increased spreads for hundreds of billions of dollars of municipal and state government debt. The rating agencies are signaling that a debt ceiling increase must be paired with some kind of meaningful deficit reduction. A CMBS pool went to market today with wider than expected spreads; is this a trend or a case of "investor paralysis" until the debt ceiling is resolved? Treasuries are still holding value for now, with the 10 year yield remaining below 3.00%...This is threatening to overshadow this week's European summit on Greece that could have major implications for the future of the Euro and bank stability across the pond....Stay tuned...David R. Pascale, Jr. | |
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