Recent Transactions

Jonny Soleimani and Matthew Farzinpour of PSRS arranged the $2,575,000 refinance of a retail property in Barstow, California. The subject property consists of 38,900 SF of leasable area. The collateral financed is the back half which consists of three buildings. The anchor tenant is a regional bargain store while the in-line tenants include a florist and bar/lounge. Financed with one of our correspondent life insurance companies, PSRS provided its borrower a three-year loan term with a 25-year amortization, with the option for the loan to be fully amortized.

Mike Thorp and Ari Zeen of PSRS arranged the $8.1 million refinance of a grocery market in San Diego, California. The subject property is a 35,891 SF shadow-anchor Northgate Gonzalez market in the “Mercado Del Barrio” mixed-use center located off the busy intersection of Cesar Chavez Parkway and Main St in San Diego. Financed with one of our correspondent life insurance companies, PSRS provided its borrower a non-recourse loan, with a five-year term and a 30-year amortization along with proceeds in cash-out.

Ricky Giancola and Trevan Swierczewski of PSRS arranged the $8.7 million construction financing of a self-storage facility in Owens Cross Roads, Alabama. The subject property is an 81,175 RSF facility spread across five buildings. PSRS secured both debt and JV equity relationships to get this deal financed. The construction debt was sourced from a regional bank at 70% LTC with a sub-7.50% floating rate. The competitive pricing was owed to a preferred banking relationship with the equity partner PSRS introduced to the borrower. The expectation is for this borrower and their new JV partner to collaborate on additional storage projects in the future.

Kostas Kavayiotidis and Matt Farzinpour of PSRS arranged a supplemental loan to advance another $2 million on an industrial property in Ontario, California. The subject property comprises two freestanding buildings totaling approximately 52,049 SF situated on oversized parcels totaling four acres with a 30% building-to-land coverage ratio. The property is in the strategic west Inland Empire industrial district. Financed with one of our correspondent life insurance companies, PSRS provided its borrower a five-year loan term with a 30-year amortization to be co-terminus with the 1st TD loan currently in place.

10-Year Treasury Rates: Currently at 4.08%, showing a 13 basis point improvement over the week from the 4.21% closing level on March 4th.
Market Sentiment: 10-year yields edged lower each day last week, boosted by positive economic data and comments from Fed officials.
Recent Low: Despite the improvement, rates remain 20 basis points above the recent low of 3.88% on February 1st.
February Employment Report Highlights:

US added +275,000 new jobs, exceeding the consensus estimate by +75,000.
The unemployment rate rose to 3.9%, up 0.2% from the previous month.
January and December job gains were revised lower by -124,000 and -43,000 respectively.

Market Reaction: The bond market reacted positively to the uptick in the unemployment rate and downward revisions in previous job numbers.
Rate Expectations: Improved rates reflect market anticipation of a ¼ point Fed funds rate cut starting in June, with expectations of a 100-basis point decrease by year-end 2024, slightly higher than the Fed's Dot Plot forecast of 75 basis points.