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