| Transactions of the Week |  | |  | | Transaction Description: | | $8,250,000 Non-Recourse Multifamily Acquisition Loan GSP's sponsor required a senior loan for the purchase of a stabilized, 96% occupied, 120-unit apartment complex outside Sacramento, California. The 7 year loan provides 18 months of interest only at LIBOR + 250 with no floor before amortizing over 30 years. |
Challenge: The borrower, a fund, required a very low interest rate, non-recourse and prepayment flexibility. While the asset is performing well, its' tertiary location constrained appetite from potential lenders. |
Solution: GSP drew on its' extensive market relationships to identify a Sacramento-based lender with local knowledge of the submarket. GSP demonstrated the institutional buyer's depth of experience to attain pricing and terms that are typically available only for assets in core market locations. | | | | |  | | | | Construction Mezzanine Financing; $4,000,000 - $15,000,000 to 100% LTV A national capital provider is funding construction mezzanine for ground-up multifamily projects to 90% of cost or 100% of value in primary and secondary markets nationwide. The loans are priced at 12% - 14%. This lender will also selectively consider student housing and retail projects built to a 6.5% return on un-trended rents. | | Transaction Size: $4,000,000 - $15,000,000 | | Rate: 12% - 14% | | Max LTV: 100% | | Max LTC: 90% | | Property Types: Multifamily, some retail | | Geography: Nationwide | | | | | Hot Money | Multifamily 4.55% Fixed for 7 Years A Southern California multifamily originator will lock rate for stabilized apartments at 4.55% fixed for 7 years. Units located from Santa Barbara to the Mexican border will be considered up to 75% of value and a 1.15 dcr. Loan requests under 55% LTV will net a 15 basis point savings during the initial term. Non-recourse is available by exception. All loans self-liquidate over 30 years. Mixed use will be considered when the commercial components do not exceed 50% of the net rentable. Transaction Size: $1,000,000 - $7,000,000 Rate: 4.55% fixed Loan Term: 30 years Amort: 30 years Max LTV: 75% Min DCR: 1.15 Property Types: Multifamily Geography: Southern California | | | 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. | | | Pascale's Perspective | Debt Ceiling, Downgrade, the Fallout.... We are able to get some perspective after the tumultuous market swings and volatility of the last few weeks. Recent Treasury auctions have gone well as US Treasuries continue to remain a "safe haven" during a slow growth and/or recessionary environment. 10 year T hit an all-time low of 1.99%. Today it closed at 2.30%. Fannie and Freddie paper is still being purchased with some spread widening, mostly due to the treasury yield drop. Full leverage agency loans are priced at 4.65% - 4.75%. The perception among investors is that the USA's highly partisan, dysfunctional political system will not be able to execute effective policy in the near or medium term future. This and the lack of a solution in Europe, has contributed to massive selloffs of equities, lending to stock market and credit market volatility. Markets today are impulsive and headline driven (less data driven) adding to the volatility. This week, it's all about the Steve Jobs resignation and expectations (impossible to meet?) for Bernanke's Jackson Hole address on Friday. ....stay tuned.... David R. Pascale, Jr. | |
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