Q10 Capital Recognizes 2013 Production Achievements
During
the annual Q10 Producer Meeting at CREF, Q10 had the honor of recognizing
several of their peers for outstanding production results in 2013. WESTCAP
is pleased to announce that Steve Bridges and Craig Rommel were awarded
President's Club recognition as two of the ten top producers in the country
last year.
OUTLOOK ON THE ECONOMY
The gap in yields between U.S.
five-year notes and 30-year bonds dropped to the lowest level in
four years as economic growth beat estimates, boosting bets the Federal Reserve
will raise interest rates next year. Treasury five-year notes fell the most in
a week as initial jobless claims dropped and the economy grew. Yields on long bonds slid to the lowest level in eight
months. Short- and medium-maturity Treasuries tumbled last week after Fed Chair
Janet Yellen suggested the central bank may end bond-buying in the fall
and raise borrowing costs six months after that.
http://www.marketwatch.com/story/treasury-curve-now-flattest-since-2009-2014-03-24?dist=afterbell
The 10-year Treasury,
which closed today at 2.72%, was 2.99% January 3, 2014, 1.92% a
year ago January 3, 2013.
- The US economy grew at 2.6% in the 4th Q vs.. 2.4%, which
economists had expected. Estimates for the 1st Q GDP are expected to slow
to 1.8% due to the brutal winter weather which plagued the US this year.
- Consumer spending rose 3.3% in the 4th Q, the most
since the 3rd Q 2010.
- Household spending rose 3.5% annualized in January, the
biggest gain since the 3rd Q 2005.
- Retail sales rose in February for the first time in
three months, which is very encouraging given the tough weather.
- Contracts for previously owned homes unexpectedly fell in
February for the eight straight month, no doubt due to the colder than normal
weather.
- The University of Michigan Consumer Confidence Index
fell to 79.9 from 81.2 in February. Consumers surveyed were more pessimistic,
indicating the faster bigger payroll gains which lead to faster wage
growth are needed to propel spending.
- The Michigan sentiment survey, indicating expectations six
months out, decreased to 69.2 from 72.7 last month. This is the lowest reading
since November.
- Federal Reserve Chair Janet
Yellen said “considerable slack” in the labor market is evidence that the
central bank’s unprecedented accommodation will still be needed for “some time”
to put Americans back to work.
Bottom line is that the economy appears to make continued
progress, even in spite of the tough winter weather. Hopefully,
economic conditions will continue to improve with the weather.
Bloomberg
10-Year Treasury Forecast The forecast of the 71 economists
surveyed by Bloomberg in March moved their median estimates for the
10-year Treasury yield up as follows:
2nd Quarter 2014 up to 3.00%
3rd Q 2014 up to 3.20%
4th Q 2014 to 3.35%
1st Q 2015 up to 3.50%
2nd Q 2015 to 3.60%
3rd Q 2015 to 3.75%
If we knew the answer to when interest rates are going to rise and fall, we'd
probably be doing something else. Just remember, you need a 20%
increase in your gross income
to overcome a 1% increase in interest rates.
RATES
Life Companies: 5-Year Fixed 3.90% - 4.90%; 10-Year Fixed
4.75% - 5.10%
10-Year
Fixed 50% LTV or less as low as 1.45 spreads for $10 million+
Multifamily: 5-Year
Fixed 3.30% - 3.85%; 10-Year Fixed 4.15% - 4.55%
Bridge Loans: $8 Million+ /
2-7-years plus options to extend, Fixed 4.60% - 6%, and floating at 90 Day
LIBOR+300, 1 point in and 1/2 - 1 point
out.
$1
Million+ / 3-years plus options to extend, Fixed 6.5% - 9%, typically 1 point
in and 1 point out.
Banks: Commercial: 5-Year Fixed 4.40% +/-;
10-Year Fixed 5.15% +/-
Multifamily:
5-Year Fixed 3.65% +/-; 10-Year Fixed 4.75% +/-
Construction Loans: LIBOR+275-400
DEALS OF THE MONTH
$30,400,000 Life
Co. financing for Portfolio of 4 multifamily projects
RATE LOCKED & IN CLOSING
$4,600,000 loan for a 16,000 SF Retail
building Life Company
RATE LOCKED & IN CLOSING
$37,500,000 144 Room Residence Inn by Marriott
construction loan with a
major money center bank in Pasadena, CA.
IN CLOSING
$2,080,000 443 unit self-storage with
a regional bank.
10-Year fixed rate, PAR and flexible prepayment penalty
San Antonio, TX.
IN CLOSING
HIGHLIGHTED CLOSINGS include Life Company perms,
Bank, CMBS, Construction Loans, Bridge Loans, and Forward Commitments.
$28,555,000 CMBS permanent for a 134 room
Marriott Courtyard hotel in Maui, HW.
$25,000,000 on an investment grade lease with 16 years remaining on a 177,000
SF single tenant office building. CMBS 10/30, 76% loan-to-purchase.
$12,500,000 Life Company permanent on a 110,000 SF Pacific Sales anchored
retail center in Escondido, CA.
$9,400,000 bridge loan on a 62% leased 71,000 SF strip retail center on
the following terms: 6% for a 5-year term amortized over 30 years with one of
our many bridge lenders.
$6,350,000 correspondent Life Company Forward Commitment Escondido
owner-user build to suit warehouse 4.35%, 15/15 (borrower’s request to match
lease term), rate locked in June prior to construction of improvements
for a forward funding in December upon completion of construction.
$4,700,000 Credit Company refinance for a 33,800 SF office over retail.
$3,350,000 correspondent life company permanent for a 120,000 SF multi-tenant
industrial park in Riverside, CA.
$2,375,000 correspondent
life company refinance for a Logan's Roadhouse Restaurant in Midland, TX.
WESTCAP's stable of exclusive
and semi-exclusive correspondent sources, most of which date back 25+
WESTCAP CORP services over
$1.4 BILLION with what we believe to be the best stable of life companies in
Southern California. We are representing some of the largest and
most sophisticated developers and investors in Southern California on an
ongoing basis, confirming that our sources offer great rates,
flexibility and dependable execution. These are solid lender
relationships, which in most cases were originated almost 30 years
ago with WESTCO, and then followed the principals to CAPMARK
and then to WESTCAP in 2007.
WESTCAP CORP is a member of Q10 Capital, an organization of 17 independent
mortgage banking firms with 26 offices throughout the United States. Q10
members arranged $10 billion in the last 3 years, with a combined servicing
portfolio of $15 billion for its institutional lenders. Q10's shared database
of lending sources and market intelligence, including streaming
quotes, insures that our clients are getting the best possible financing. www.Q10Capital.com
WESTCAP’s capacities include capital procurement
for the following:
- Loan sizes from $1,000,000
to $250,000,000+ nationwide.
- Retail, Industrial,
Office, Multifamily, Medical office, Hospitality, Self-Storage and Health
Care, including some great single-tenant sources, as well the market
standard for credit tenant lease financing.
- In addition to our
outstanding stable of correspondent life companies, we also enjoy
successful long-term relationships with a host of additional
direct life company relationships, as well as a full range of
debt and equity programs, including a long list of CMBS,
construction lenders, bridge lenders and
mezz sources, as well as Fannie Mae, Freddie Mac and
HUD financing.
I am always available to discuss potential
financing and or equity requirements, or to provide a written quote to
help convince a seller that you, or your client, are the most qualified buyer.
I will also handle any size transaction, as I am interested
in establishing long-term relationships as early as possible.
