Land
Financing
Grace Capital is pleased to announce that we have secured several
new lending partners for land financing on commercial and residential
projects nationwide for un-entitled raw land, tentative mapped land
and land developments. Pricing and terms vary with the risk factors
for each project and its market characteristics. Non-recourse is
available in certain circumstances.
Loan sizes range from $1,000,000 to $100 million.
Equity
Capital Structures
Grace
Capital has a new Life Company (LC) equity investor for commercial
real estate value added projects, developments and condo conversions.
Our LC investor can structure their equity in traditional ways at
terms priced better than the big NY Investment Banking Firms; BUT
the exciting structure that makes this LC unique is the ability
to provide 100% financing. The LC uses a Forward Commitment (LCFC)
as the collateral for 100% of the project costs at LIBOR based pricing
from the big Money Center Banks. With this LCFC, there is no “look
back” or “water fall” investor returns. Profits
are split when the project is completed, sold or refinanced!!!
Equity size ranges from $15 million to $200 million.
Income Property
Fixed
Rate Property Loans as of October 5, 2004:
| Property
Type |
10
Year Rates* |
| Apartments |
4.87%
- 5.15% |
| MHP |
4.97%
- 5.25% |
| Commercial
Properties |
5.01%
- 5.55% |
| Credit
Tenant Leases |
5.08%
- 6.18% |
Hard
Money
Grace
Capital has private investor money available for land, commercial
real estate and residential developments nationwide. Rates and terms
vary but range from a low of 8% to as much as 14% with terms from
6 months to 3 years. Hard money typical max’s out at 70% LTV
but it can move very quickly and be good short term bridge financing.
Loan amounts range from $1,000,000 to $75 million.
Structured
Financing
Grace
Capital has been very successful in structuring project financing
with debt, mezzanine and hard money financing to eliminate equity
profit sharing. Two recent value added projects came to us by a
developer who was looking for an equity partner. Grace Capital,
instead, structured them with bank LIBOR senior loans with a junior
mezzanine financing secured by the partnership interests to get
the loan to cost up to 93% without any equity or profit participation
at interest rates in the mid 4% range!
Credit
Tenant Financing
Grace
Capital just received a quote on a Lowe’s Home Improvement
Warehouse at a spread of 0.81% over the 10 year Treasury which is
approximately 4.00% this week; that’s a 4.81% 10 year rate!
WHAT ARE YOU WAITING FOR?.
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Recent
Closings
Economic Updates
The
number of U.S. workers filing first-time applications for unemployment
benefits rose by 18,000 to a seasonally adjusted 369,000 for the
week that ended Sept. 25, the Labor Department reported. That marked
the highest level since the week of February 7th. A Labor Department
statistician said the increase was caused by hurricanes Charley,
Frances and Ivan. Jobless claims have risen in five of the six weeks
since the hurricanes began to strike Florida in mid-August. The
four-week average of claims, as a result, has moved steadily higher.
Consumers
appear to be tapped out on spending for now, economists say. Business
investments will be counted on to change the economy, which grew
at a 3.3 percent annual rate in the second quarter, up from initial
estimates of 2.8 percent.
Inspiration
At
a 1984 prayer breakfast, Mr. Reagan stated: "Without God, there
is no virtue, because there's no prompting of the conscience. Without
God, we're mired in the material, that flat world tells us only
what the senses perceive. Without God, there is a coarsening of
the society. And without God, democracy will not and cannot long
endure. If we ever forget that we're one nation under God, then
we will be a nation gone under."
In
Memory of President Ronald Wilson Reagan: 1911-2004
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