LIDO HOUSE HOTEL FUNDING / NEWPORT BEACH, CA

LIDO HOUSE HOTEL
A Marriott Autograph Collection Hotel
FUNDING
May 10, 2016

I am pleased to announce the funding of a $42,200,000 construction loan for the development RD Olson Development's new LIDO HOUSE HOTEL on the site of the former Newport Beach City Hall. The proposed development is a 130 room, Marriott Autograph Collection Hotel that will include a lobby, cafe/bakery, 4,400 square feet of function space, restaurant/bar, outdoor dining area, rooftop lounge, fitness center, health spa, business center, concierge, and outdoor courtyard with pool and spa, cabanas, fire place, and function lawn. Construction is expected to commence in May 2016 with the operations of the hotel beginning in fourth quarter 2017.The Construction financing was arranged through one of Q10-Westcap's key bank relationships.

MORTGAGE MARKET UPDATE   The 10-year Treasury yield has pulled back in to 1.76% as of close today on lackluster quarterly earnings reports and continued concerns over global economies.

Life Company Rates:
                       5 Year           10 Year             20 Year
Multifamily  2.81%-3.51%   3.05%-3.75%   3.73%-4.48%

Retail            3.01%-3.71%   3.36%-4.06%    3.93%-4.68%

Office            3.06%-3.76%  3.41%-4.11%    4.00%-4.73%

Industrial       3.00%-3.61%  3.26%-4.00%    3.83%-4.58%

* Many have instituted floors with the huge drop in yields seen recently, and many really are not sure what to quote right now. Ranges are consistent with LTV's. We are seeing full leverage life company spreads in the 175-200 range over the 10-year Treasury equating to rates and low leverage deals in the 140-150 spread range today.

TAXABLE BOND FINANCING - Something new to announce. We are working with a Taxable Bond Group which is providing construction, bridge, permanent and construction-to-perm on all product types and higher leverage than conventional and at amazingly low rates. Minimum size $10,000,000.

CMBS Spreads: CMBS continues to be up against some real challenges with the new banking regulations, which now require a senior level manager to personally certify the quality of the loans being made for secularization. In addition, CMBS lenders are now being required to retain 5% of each loan they make. The result is higher CMBS spreads, which are currently running in the range of 300-325 over the higher of swaps or Treasury yields for full leverage. Coupled with high swap rates we are seeing full CMBS loans for 10-year terms in the range of 4.75%+/-.

WHY Q10 | WESTCAP?
Q10 | WESTCAP is a founding member of Q10 Capital, which is a network of 14 of the largest independent mortgage banking companies in the country with a combined servicing portfolio in excess of $12.7 Billion. With a proprietary database sharing quotes, lender and equity intelligence we are constantly in a position to insure that we deliver the best sources at any given time for our clients.

Q10 | WESTCAP serves as a correspondent to 13  life insurance companies for, which we service over $1.6 billion, and other sources of capital in order to meet all of our client's financing needs. Most of these correspondent relationships date back over 25 years, including Sun Life of Canada for which we have been the exclusive correspondent in Southern California for almost 30 years. We are handling assignments ranging from $1,000,000 to $400,000,000, and represent all sizes of borrowers including some of the largest developers in Southern California.

Call for rates on all income property types including hospitality, self-storage, student and senior housing. In addition to our life company sources, we have a long list of relationships with active CMBS, construction, bridge and mezz lenders and equity for all product types. We even have a couple of bank sources which offer no prepayment penalty and a few who offer non-recourse. With a few exceptions our permanent lending sources are PAR to us.

Steve Bridges
Executive Vice President
Q10 | WESTCAP CORP
9960 Irvine Center Drive
Irvine, CA 92618
Office: (949) 387-9061  Cell: (949) 235-1540
sbridges@Q10westcap.com
          https://www.linkedin.com/in/SteveBridges2                  

www.Q10westcap.com
CA RE Broker: 00465840

First Quarter Market Update & Fundings
April 20, 2016

RESIDENCE INN LAX by Marriott

  I am also pleased to announce the funding of a $53,500,000 permanent loan for  
SVI LAX, LLC for the Residence Inn LAX, which is the top performing hotel in the
LAX sub-market. The property was originally a 12-story office building which our
borrower did a spectacular job converting to the current use, a 231 room Residence Inn
suites hotel. Our permanent loan funded on 10-months stabilized and includes an
earn-out tied to a performance debt yield.   
RESIDENCE INN By Marriott Goleta, CA

   I am also pleased to announce the funding of another construction loans for
RD Olson Development for the development of the 118 room Residence Inn
in Goleta, CA in the amount of $30,355,000. The construction financing was
arranged through one of Westcap Corp's key bank relationships.
 
  EL SEGUNDO CREATIVE OFFICE

$30,000,000 permanent loan for this newly renovated, fully leased, 5 story
creative office building in El Segundo, CA.  Financing was provided by
Westcap's exclusive correspondent Sun Life of Canada who won the business
with a very competitive interest rate below 4% for this 10 year loan. 
RESEARCH POINTE, Irvine Spectrum

$7,500,000 10-year fixed 25-year amortizing at 4.75% on a three tenant
50,000SF office with one tenant in transition and another vacating. PAR,
no hold-backs and no prepayment penalty through one of our regional banks.

MORTGAGE MARKET UPDATE
It has been an outstanding quarter and other than a blip in CMBS, which is
getting back in the swing of things, we are seeing more than enough capital
from our life companies, banks, pension funds and debt funds to keep the ball
rolling. The first quarter saw major fluctuations in Treasury yields and spreads
in the CMBS arena in particular. Movement of both continues to move in
concert with the price of oil, and which has fluctuate from a low of $30.75/brl 
to a high of $41.75/brl over the 1st Q and presently stands at $41.08/brl . Over
the same time, we have seen the 10-year Treasury fluctuate from a low of 1.52%
up to 2.30% ago and presently stands at 1.82%. There are whisperings of
China's economy imploding, while Europe central bank is considering negative
interest rates in an attempt to stimulate their sagging economy, and our FED is
now wondering if they raised rates too soon. Our economy is still lagging with
"real unemployment rate (U6)" standing at 9.8% and I continue to believe that
we are going to continue to be stuck in this rut until U6 improves considerably
and a white knight comes along who can rein in government spending. The
following links spell out the situation clearly:

http://www.bloombergview.com/articles/2016-04-05/bond-yields-predict-the-new-mediocre-is-here-to-stay

http://portalseven.com/employment/unemployment_rate_u6.jsp


Life Company Rates:
                       5 Year            10 Year             20 Year
Multifamily  2.87%-3.57%   3.20%-3.90%   3.77%-4.52%
Retail            3.07%-3.77%   3.40%-4.10%    3.97%-4.74%
Office            3.20%-3.82%  3.45%-4.15%    4.02%-4.77% 
Industrial       2.97%-3.67%  3.30%-4.00%    3.87%-4.62%


Many have institutes floors with the huge drop in yields seen
recently, and many really are not sure what to quote right now.
Ranges are consistent with LTV's. We are seeing full leverage
life company spreads in the 175-200 range over the 10-year
Treasury equating to rates in the high 3's to low 4's today.
CMBS Spreads: CMBS is up against some real challenges
with the new banking regulations kicking in, which now
require a senior level manager to personally certify the quality 
of the loans being made for secularization. In addition, CMBS
lenders are now being required to retain 5% of each loan they
make. The result is higher CMBS spreads, which are currently
running in the range of 310-325 for full leverage over the higher
of Swaps or the Treasury yield, resulting in full leverage CMBS
loans commercial property loans for 10-year terms in the range
of 5.00%+/-. Hospitality is running higher.
WHY WESTCAP?
   WESTCAP is a founding member of Q10 Capital, which was
formed in 1988, and is a network of 14 of the largest independent
mortgage banking companies in the country which have arranged
$12.7 billion over the past three years. With a proprietary database
sharing quotes, lender and equity intelligence we are constantly in
a position to insure that we deliver the best sources at any given
time for our clients.

   WESTCAP serves as a correspondent to 15  life insurance companies
for, which we service over $1.5 billion, and other sources of capital in
order to meet all of our client's financing needs. Most of these
correspondent relationships date back over 25 years, including
Sun Life of Canada for which we have been the exclusive correspondent
in Southern California for almost 30 years. We are handling assignments
ranging from $1,000,000 to $400,000,000, and represent all sizes of
borrowers including some of the largest developers in Southern California.

   Call for rates on all income property types including hospitality,
self-storage, student and senior housing. In addition to our life company
sources, we have a long list of relationships with active CMBS, 
construction, bridge and mezz lenders and equity for all product types.
We even have a couple of bank sources which offer no prepayment
penalty and a few who offer non-recourse. With a few exceptions our
permanent lending sources are PAR to us.

Steve Bridges
Executive Vice President
WESTCAP CORP
9960 Irvine Center Drive
Irvine, CA 92618
Office: (949) 387-9061  Cell: (949) 235-1540
sbridges@westcapcorp.com
          https://www.linkedin.com/in/SteveBridges2                   www.westcapcorp.Q10Capital.com
CA RE Broker: 00465840

Irvine Full Service Marriott Funding

IRVINE FULL SERVICE MARRIOTT FUNDING
February 11, 2016

I am pleased to announce the funding of a $72,150,000 construction loan which I had the privilege of arranging for the development RD Olson Development's new Irvine Spectrum Full Service Marriott Hotel. This 271-room full service hotel is to be located at the corner of Irvine Center Drive and Gateway, right across the street from the Irvine Spectrum Center. Hotel amenities will include a restaurant, bar and lounge, 9,000 square feet of meeting and pre-function space, a large event lawn, expansive pool and spa, state of the art two story 2,000 square foot work-out facility, and a large roof top terrace. Opening is scheduled for 4th quarter 2017.The Construction financing was arranged through one of Westcap Corp's key bank relationships.

INCOME PROPERTY FINANCING UPDATE We just returned from the annual Mortgage Banker's Income Property Finance Conference in Orlando. The mood with all of our lenders and others we met with was very upbeat, and all have a lot of allocation for 2016. As indicated last month, early in the year is the best time to get your financing when lenders are more aggressive, looking to fill their allocations.
   Treasury yields have been moving in concert with the price of oil recently, and with the dramatic drop in oil prices, which closed to $27.06/brl this morning after getting down to $26.50/brl this morning, we have seen the 10-year Treasury go from 2.30% a month ago to 1.64% today after dipping to 1.52% this morning. The down spike in oil is causing great global concern while China's economy continues to struggle, causing a ripple effect on its raw material suppliers worldwide. Consensus with the oil experts seems to be that oil prices will remain depressed for some time to come, with a possible increase late this year. Expect mortgage rates to continue to track with the price of oil, begging the question, did the Fed increase the Fed Funds Rate too soon? The following links certainly spell out the global economic concerns in greater detail as of this morning: 
http://www.usatoday.com/story/money/markets/2016/02/11/stocks-dow-thursday/80221858/           http://cnnmon.ie/1LiKWmG
   We also came back with a couple of very interesting loan programs worth mentioning:   
   1.  More IO and Extended Amortization Life Company Programs: A couple of our correspondent life insurance companies, eager to win some of the business currently being left on the table by CMBS due to their high spreads and uncompetitive rates, are now entertaining longer interest only terms and amortization up to 35 years for commercial and up to 40 years for multifamily, and leverage up to 85% LTV on a select deal by deal basis.

   2.  Freddie Mac Small Loan Program: This $1,000,000 - $5,000,000 program is a compliment to our large balance Agency programs, and offers fixed and floating rates up to 80% LTV. The program is designed to be easy to process, low cost and quick, and is priced inside of JP Morgan Chase and is PAR to WESTCAP. This lender did $1.5 billion in 2015 and 40% of it was in California. We are direct to this lender through our Q10 alliance.

Life Company Rates:
                                  5 Year                   10 Year                   20 Year
Multifamily                  3.25%-3.75%        3.25%-4.00%          3.90%-4.50%

Retail                            3.25%-3.90%        3.60%-4.25%          4.00%-5.00%

Office                            3.25%-3.90%        3.60%-4.25%          4.00%-5.00% 

Industrial                       3.25%-3.90%        3.60%-4.25%          4.00%-5.00%

* Many have institutes floors with the huge drop in yields seen recently, and many really are not sure what to quote right now. Ranges are consistent with LTV's, bearing in mind that we are seeing many lenders add floors. We are seeing full leverage life company spreads in the 175-200 range over the 10-year Treasury equating to rates in the high 3's to low 4's today.

CMBS Spreads: CMBS is up against some real challenges with the new banking regulations kicking in, which now require a senior level manager to personally certify the quality of the loans being made for secularization. In addition, CMBS lenders are now being required to retain 5% of each loan they make. The result is higher CMBS spreads, which are currently running in the range of 300-325 over the swap rate. Coupled with swap rates works out to rates for 10-year terms in the range of 4.75% - 5.00%+/- for a full levered CMBS loan.
 
WHY WESTCAP?  WESTCAP is a founding member of Q10 Capital, which was formed in 1988, and is a network of 18 of the largest independent mortgage banking companies in the country with a combined servicing portfolio in excess of $15 Billion. With a proprietary database sharing quotes, lender and equity intelligence we are constantly in a position to insure that we deliver the best sources at any given time for our clients.

WESTCAP serves as a correspondent to 15  life insurance companies, for which we service over $1.5 billion, and other sources of capital in order to meet all of our client's financing needs. Most of these correspondent relationships date back over 25 years, including Sun Life of Canada for which we have been the exclusive correspondent in Southern California for almost 30 years. We are handling assignments ranging from $1,000,000 to $400,000,000, and represent all sizes of borrowers including some of the largest developers in Southern California.

Call for rates on all income property types including hospitality, self-storage, student and senior housing. In addition to our life companies, we have a long list of outstanding long-term relationships with active construction and bridge lenders, CMBS and equity for all product types. We even have a couple of bank sources which offer no prepayment penalty and a few who offer non-recourse. With a few exceptions our permanent lending sources are PAR to us.

Steve BridgesExecutive Vice President
WESTCAP CORP
9960 Irvine Center Drive
Irvine, CA 92618
Office: (949) 387-9061  Cell: (949) 235-1540sbridges@westcapcorp.com
          https://www.linkedin.com/in/SteveBridges2                  

www.westcapcorp.com
CA RE Broker: 00465840