LIDO HOUSE HOTEL
A Marriott Autograph Collection Hotel
FUNDING
May 10, 2016
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%
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 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
CA RE Broker: 00465840
