INCOME PROPERTY FINANCING NEWSLETTER APRIL 2014

 

MARKET UPDATE March 31, 2014

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.
CLOSED

Expert's Opinions If you are interested in access to just about every major financial publication’s editorials, check the following website and save it in your bookmarks: http://www.realclearmarkets.com

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. http://bloom.bg/O8DP8H

Treasury Yields Flatten As Yields Are Expected to Climb: http://www.marketwatch.com/story/treasury-curve-now-flattest-since-2009-2014-03-24?dist=afterbell

El Erian Believes Markets Have Brushed Aside Global Unrest: http://blogs.marketwatch.com/thetell/2014/03/24/el-erian-markets-should-be-worrying-about-ukraine/

Trade Growth Leads as European Economic Recovery Broadens:
http://www.bloomberg.com/news/2014-02-26/trade-leads-u-k-economy-to-growth-as-recovery-broadens-1-.html

Ports Of Long Beach & Los Angeles Driving Our Local Economy: 
Port of Long Beach: http://www.polb.com/economics/default.asp
Long Beach Container Data: http://www.polb.com/economics/stats/tonnage.asp
Los Angeles Container Data: http://www.portoflosangeles.org/maritime/stats.asp

WESTCAP's stable of exclusive and semi-exclusive correspondent sources, most of which date back 25+ years, include:

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.

  Steve Bridges
  Executive Vice President
  WESTCAP CORP
  9960 Irvine Center Drive
  Irvine, CA 92618
  Office: (949) 756-2520 x 204  Cell: (949) 235-1540
  sbridges@westcapcorp.com
  www.westcapcorp.com
  CA RE Broker: 00465840

 

 

 

 

 

 

WESTCAP CORP JUNE INCOME PROPERTY NEWSLETTER

For additional information, please visit our website  www.westcapcorp.com   Interest Rates   Prime 3.25% 10 Year Treasury 2.53%   5 Year Treasury 1.42%   30 Day Libor 0.19% 90 Day Libor 0.27%   6 Month Libor 0.47%   5 Year Swap 1.63% 10 Year Swap 2.74%  11th Dist .97%     Steve Bridges 949-756-2520 x204 Mobile: 949-235-1540   MARKET UPDATE June 27, 2013   COMMERCIAL REAL ESTATE FINANCE UPDATE Corporate bonds suffered a double whammy as interest rates rose and credit spreads widened after Federal Reserve chairman Ben Bernanke insinuated that the Fed would begin to slowly reduce its asset purchase program as soon as this fall. (Be sure to check Bill Gross' read in the Expert Section below)Feedback from our life companies this week has been that they expect the 10-year Treasury to increase to 3.50% to 5.00% after FED stimulus subsides. This would be consistent with historical 10-year Treasury rates, which run about 2.50% over the inflation rate during periods of no FED stimulus, as well with Bill Gross' range (see  Expert's Section). There is also a real concern that as rates rise, and assuming the Obama Administration continues to spend as they have, which all assume they will, the government could soak up the majority of those investment funds available after stimulus ends, potentially leaving the private sector with a liquidity crunch. Our CMBS sources feel that spreads will likely come in after the 4th of July for the following reasons:   - CMBS has to mark their portfolios to market at the end of each quarter   - As Swaps trend higher, value of the portfolios drop, just like bonds.   - As a result, investors don't like to buy at the end of quarters, and particularly in rising  rate environments.   - Most of our CMBS sources also feel there has been some over reaction, and for this reason as well, expect spreads to come back in a bit after the end of the quarter. Finally, expect life companies to approach their allocation limits in the second half of the year, which will result in them becoming more selective and possible increases in spreads. Bottom line, if you are looking to refinance, it would be wise to do it and lock rate as soon as possible. Remember, you need a 20% increase in your gross income to overcome a 1% increase in interest rates.   DEALS OF THE MONTH   Four industrial properties totaling 609,750 square feet refinanced with Sun Life of Canada in Corona, Corona, Jurupa and Riverside.  Two were single tenant with short term rollover. These were separate loans.  CLOSED   110,000 SF Pacific Sales, Petco anchored center refinanced with GENWORTH (life company). CLOSED OTHER HIGHLIGHTED CLOSINGS THIS YEAR $50,000,000 life company permanent for a 203-unit luxury apartment building over ground floor retail, 10/30 with 5 years interest only. CLOSED $29,400,000 hotel construction loan with a major money center bank. Irvine Spectrum. CLOSED $25,000,000 on an investment grade lease with 16 years remaining on a 177,000 SF office building. CMBS 10/30, 76% loan-to-purchase. CLOSED $17,150,000 CMBS permanent loan on a Residence Inn, San Juan Capistrano. CLOSED $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. CLOSED $6,300,000 on a 32,770 SF Rite Aid anchored neighborhood shopping center in Indio with a conduit lender. CLOSED $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. CLOSED $3,350,000 correspondent life company permanent for a 120,000 SF multi-tenant industrial park in Riverside, CA. CLOSED $2,850,000 correspondent life company permanent for a 35,000 SF single tenant office building in Irvine, CA. CLOSED $2,400,000 correspondent life company permanent for a  22,350 SF multi-tenant retail center in Torrance, CA. CLOSED $1,500,000 regional bank construction loan retail center. IN CLOSED $1,000,000 regional bank permanent single tenant auto repair in El Cajon, CA IN CLOSED RATES Life Companies:  5-Year Fixed 3.90% - 4.90%; 10-Year Fixed 4.40% - 5.10% Multifamily:  5-Year Fixed 3.57% - 3.94%; 10-Year Fixed 4.78% - 5.20% Bridge Loans:  $8 Million+  / 3-years plus options to extend, Fixed 5.5% - 6%                                   $1 Million+ / 3-years plus options to extend, Fixed 6.5% - 9%Construction Loans:  LIBOR+275-400   10-Year Treasury Forecast   The forecast of the 71 economists surveyed by Bloomberg in June moved their median estimates for the 10-year Treasury yield up from 1.90% to 2.10% for the 2nd Q 2013, to 2.50% for the 2nd Q 2014 and  to 2.80% for the 4th Q 2014.  The survey was done between June 7th and 12th when the 10 year Treasury was at 2.10%. 10 year Treasury Rates moved up over 2.6% on June 24th up 97 bps since May 1, 2013.  The Fed has been the largest buyer of Treasuries to try to keep rates down.  They indicated after their meeting this month that they may start to curtail their acquisition of Treasuries the end of this year, which triggered this most recent run up in rates.    Expert's Opinions If you are interested in access to just about every major financial publication’s editorials, check the following website and save it in your bookmarks: http://www.realclearmarkets.com 6/27/13: PIMCO's Bill Gross sees 10-Year Treasury Settling between 3% - 5%: http://money.cnn.com/2013/06/27/investing/bill-gross-treasuries/index.html 6/21/13: PIMCO's Bill Gross Interpretation on Bernanke's Announcement: http://www.pimco.com/EN/Broadcasts/Pages/BroadcastsOverview.aspx Retail Rent Growth Taking Roots Across US: http://www.costar.com/News/Article/Retail-Rent-Growth-Finally-Takes-Root-Across-US-Metros/148558?ref=100&iid=336&cid=EE8A67FD962BAB4405BF468F83BA2109 China Ghost Cities: http://www.youtube.com/watch?v=wm7rOKT151Y&feature=youtu.be   China's GDP is based on construction. When they stop building these ghost cities (64 million vacant units!!!), the negative impact globally should be dramatic. Ports Of Long Beach & Los Angeles Driving Our Local Economy: Port of Long Beach: http://www.polb.com/economics/default.asp Long Beach Container Data: http://www.polb.com/economics/stats/tonnage.asp   Port of Los Angeles: http://www.portoflosangeles.org/ Los Angeles Container Data: http://www.portoflosangeles.org/maritime/stats.asp     The Month In Review   The 10-year Treasury opened at 2.54% this afternoon (June 26), up from 1.81% on June 7.  June 7 opened with oil at $96.02 the Euro at $1.304 vs.. the Dollar and Gold at $1,468.60.   Key contributors to last month's rate movement were as follows: Although Corporate earnings reports have slowed, profits are still at record levels and projected to rise through the end of the year. The median price for an OC home was up 27.4% in March, while sales increased 14%, the highest level since April 2006. This trend is occurring nationwide on historic low inventories, as construction of new homes are well below levels needed to fill the void. 11% jump in US home prices The CPI dropped to 1.1% annually in April, matching the smallest increase since  the CPI records began in 1960. That was down from 1.9% for the year ending April 2012. "Slowing inflation has twice spurred FED fears that deflationary psychology could damage the recovery as consumers postpone purchases." Bernanke indicated that stimulus is still needed, but suggests the FED may start scaling back on bond purchases as early as next month.  OC home prices jumped 20.1% in the 12 months ending April. Troubling data reports send the DOW plunging. These reports include weak hiring at private companies, a plunge in mortgage applications and sluggish US factory orders. Foreign investment in China rose 0.4% over the past 12 months, dramatically short of the increase anticipated. China's trade surplus is one-tenth the official $61 billion reported so far this year after accounting for fake transactions used to disguise hot-money inflows, according to Bank of America. The German economy's return to growth in the first Q was hampered by declines in construction activity as a severe winter and the continuing European recession continues to dampen demand.   On a positive note, the European Central Bank indicated they will take steps to shore up the ailing European economies. And several major retailers released better than expected sales reports for May. US employers added 175,000 jobs in May. These figures were lower than expected and well below an average of at least 250,000 per month needed to solve our unemployment, which rose to 7.6%. Again, this percentage is misleading as it does not include those who have given up looking and those who are part-time but want full-time employment. Chapman University forecasts 2.3% job growth through this year and 2.6% growth next year. Four reports showed a brighter US economy, as housing and manufacturing continued to improve and consumer confidence hit its highest level in 5-1/2 years (81.4), as orders for durable goods were up 3.6%, and sales of new homes rose in May to a seasonally adjusted 476,000, the fastest pace since July 2008. The US economy grew at revised 1.8% for the 1st Q. February 6 saw oil at $94.94 the Euro at $1.300 vs. the Dollar and Gold at $1,230.50.   WESTCAP CORP services over $1.2 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 $150,000,000+ 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. WESTCAP's stable of exclusive and semi-exclusive correspondent sources include: AEGON USA  Allianz Investment Corp Aviva Investors Broadview Financial 40/86 Capital Advisors GENWORTH ING Investment Management MEMBERS Capital   NATIONAL LIFE INSURANCE COMPANY OHIO NATIONAL FINANCIAL SERVICES PNC/ARCS StanCorp Sun Life Assurance of Canada UNUM Group In addition to these outstanding correspondent life companies, we also enjoy successful long-term relationships with a full range of debt and equity programs, including Fannie Mae, Freddie Mac and HUD, a long list of CMBS, construction lenders, bridge lenders and mezz sources.     We are 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.  We will also handle any size transaction, as we are interested in establishing long-term relationships as early as possible.   Steve Bridges Executive Vice President WESTCAP CORP 9960 Irvine Center Drive Irvine, CA 92618 Office: (949) 756-2520 x 204  Cell: (949) 235-1540 sbridges@westcapcorp.com www.westcapcorp.com CA RE Broker: 00465840

MAY 2013 WESTCAP INCOME PROPERTY FINANCING NEWSLETTER

MARKET UPDATE
May 10, 2013

COMMERCIAL REAL ESTATE FINANCE UPDATE
Don't get caught with life companies out of allocation as we approach the second half of the year. Reminds me of a great joke, which I will spare my readers. Call if you really want to hear it. Point being that we have seen a tremendous level of financing activity this year, and at some point, particularly with these low rates, we are going to see the life companies pull back due to allocations achieved for the year.

Rates continue to remain incredibly low, as we are seeing some 10 year fixed rate life company financing in the high 3's, and even had one very low leverage 10-year fixed rate deal at 3.20%! Note that the stars must all align for these low rates, and these rates are reserved for no brainers and minimum loan sizes of $5 million plus. We expect rates to remain low as long as the FED keeps stimulating, China' s economy slows, Europe remains in economic peril, and job creation continues to struggle. However, when the FED stops stimulating, and these other concerns turn positive, rates will rise, and will do so quickly. If  housing construction does not slow at that point as a result of increased rates, we will see even more pressure at that point for rates to increase. Bernanke indicated the FED plans to cut back stimulus from $85 billion to $50 billion per month by the 4thQ 2013

 

Remember, you need a 20% increase in your gross income
to overcome a 1% increase in interest rates.

______________________________________________________________________

 

Deals of the Month

$29,400,000 hotel construction loan with a major money center bank. Irvine Spectrum. CLOSED

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$17,150,000 CMBS permanent loan on a Residence Inn, San Juan Capistrano. CLOSED

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$50,000,000 life company permanent for a 203-unit luxury apartment building over ground floor retail, 10/30 with 5 years interest only. CLOSED

$25,000,000 on an investment grade lease with 16 years remaining on a 177,000 SF office building. CMBS 10/30, 76% loan-to-purchase. CLOSED

$6,300,000 on a 32,770 SF Rite Aid anchored neighborhood shopping center in Indio with a conduit lender. CLOSED

$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. CLOSED

$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. CLOSED

$2,850,000 correspondent life company permanent for a 35,000 SF single tenant office building in Irvine, CA. CLOSED

$2,400,000 correspondent life company permanent for a  22,350 SF multi-tenant retail center in Torrance, CA. CLOSED

$1,500,000 regional bank construction loan retail center. IN CLOSING

$1,000,000 regional bank permanent single tenant auto repair in El Cajon, CA IN CLOSING

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RATES

Life Companies:  5-Year Fixed 3.05% - 4.00%; 10-Year Fixed 3.20% - 4.25%
Multifamily:  5-Year Fixed 2.98% - 3.50%; 10-Year Fixed 3.88% -4.30%

Bridge Loans:  $8 Million+  / 3-years plus options to extend, Fixed 5.5% - 6%          
                            $1 Million+ / 3-years plus options to extend, Fixed 6.5% - 9%Construction Loans:  LIBOR+275-400

---

10-Year Treasury Forecast   The average forecast of the 71 economists surveyed by Bloomberg in April moved their median estimates for the 10-year Treasury yield up from 1.80% to 1.90% for the 1st Q 2013, down from 2.62% to 2.58% for the 2nd Q 2014 and up to 2.89% for the d Q 2014. The lowest estimates were 1.70%, up from 1.60%, 1.77% down from 1.90%, and 1.80% down from 2.08% respectively.

10 year Treasury Rates moved up over 2.0%  the highest level since April last year and up 35 bps since the middle of December.  The Fed continues to be the largest buyer of Treasuries to try to keep rates down.  The question is, how long will the FED continue to buy Treasuries at this rate and what is the price point needed to attract other buyers?  

---

Expert's Opinions

 

 

If you are interested in access to just about every major financial publication’s editorials, check the following website and save it in your bookmarks: http://www.realclearmarkets.com
PIMCO's View on the Housing Market's Road to Recovery:
http://www.pimco.com/EN/Insights/Pages/The-Housing-Markets-Road-to-Recovery-Slower-Speed-Limits-and-Stricter-Enforcement.aspx

Europe's Sovereign Debt Problem:  http://www.pimco.com/EN/Insights/Pages/Europes-Sovereign-Debt-Problem-A-Call-for-a-Clear-Destination.aspx

Ports Of Long Beach & Los Angeles Driving Our Local Economy:
Port of Long Beach: http://www.polb.com/economics/default.asp
Long Beach Container Data: http://www.polb.com/economics/stats/tonnage.asp  
Port of Los Angeles: http://www.portoflosangeles.org/
Los Angeles Container Data: http://www.portoflosangeles.org/maritime/stats.asp

______________________________________________________________________________

 

The Month In Review  

The 10-year Treasury opened at 1.81% this morning (May 7), down from 2.05% on March 15. May 7 opened with oil at $92.55, the Euro at $1.301 vs. the Dollar and Gold at $1,590.95.  Key contributors to last month's rate movement were as follows:

• The Dow's winning streak of 10-days was the longest in nearly 17 years, pushing the DOW up 484 points (3.4%) to 14,539.
• The FED said consumer prices increased in February at the fastest pace in nearly three years, up 0.7%, raising concerns of rising inflation.
• Fear of a revived Euro debt crisis faded as Bernanke said that the Cyprus crisis posed no major risk to the US economy. However, the Euro debt crisis is still a mess and years from recovery.
• The FED also indicated that the economy has strengthened after pausing late last year, but still needs support from the central bank.
• Corporate earnings reports are beating most expectations.
• Factory orders surged in February, as orders for durable goods climbed 5.7% from the previous month.
• Housing prices rose in January at the fastest pace since the summer of 2006, up 8.1% over January 2012.
• CSU Fullerton's Southern California leading economic indicators rose 0.82% to 108.65 in the 4th Q, its highest reading to date, suggesting good times for Southern California for the next 6 months, and consistent with OC's unemployment rate dropping to 6.5%.
• Consumer spending climbed 0.7%, to the highest reading in 5 months.
• Consumer sentiment climbed in March to 78.6, the highest level since November.
• US employers only increased their payrolls by 88,000 in March, after 288,000 in February. Very disappointing numbers.
• Wholesale prices dropped 0.6% in March, largely on the decline in gas prices.
• Business inventories increased just 0.1% in February, the smallest gain since June.
• New home construction topped 1 million last month, the highest since June 2008.
• While China's growth slowed short of expectations, it still managed a 7.7% increase for the 1st Q.
• US corporate earnings on some of the bigs are coming in below expectations, but overall have been above expectations.
• The FED's Beige Book report finds a strengthening housing recovery and robust auto sales contributed to moderate growth in late February and March.
• Employers created 165,000 jobs last month, and unemployment rate dropped to 7.5%. Encouraging, but the real unemployment rate when adding those who have given up and those working part time, who would like to be full-time, is closer to 15%, and there are are over 11.7 million still out of work. Bottom line, we need over 250,000 new jobs per month to solve our "real unemployment" problem.  http://wallstcheatsheet.com/stocks/unemployments-down-but-is-it-enough.html/?ref=YF
• Jobless claims fell by 4,000 last week to 323,000, the lowest in five years. Economists had forecast 335,000.
• February 6 saw oil at $96.02 the Euro at $1.304 vs. the Dollar and Gold at $1,468.60.

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WESTCAP CORP services over $1.2 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 of major 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 $150,000,000+ 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.
• WESTCAP's stable of exclusive and semi-exclusive correspondent sources include:
  
  
  
  
  • AEGON USA 
  • Allianz Investment Corp
  • Aviva Investors
  • Broadview Financial
  • 40/86 Capital Advisors
  • GENWORTH
  • ING Investment Management
  • MEMBERS Capital  
  • NATIONAL LIFE INSURANCE COMPANY
  • OHIO NATIONAL FINANCIAL SERVICES
  • PNC/ARCS
  • StanCorp
  • Sun Life Assurance of Canada
  • UNUM Group
  • In addition to these outstanding correspondent life companies, we also enjoy successful long-term relationships with a full range of debt and equity programs, including Fannie Mae, Freddie Mac and HUD, a long list of CMBS, construction lenders, bridge lenders and mezz sources.

---

 

We are 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.  We will also handle any size transaction, as we are interested in establishing long-term relationships as early as possible.

---

 Steve Bridges

Executive Vice President
WESTCAP CORP
9960 Irvine Center Drive
Irvine, CA 92618
Office: (949) 756-2520 x 204  Cell: (949) 235-1540sbridges@westcapcorp.com www.westcapcorp.com
CA RE Broker: 00465840