$9,600,000 Refinance of a Retail Center in Torrance, California.

Trevor Blood of PSRS arranged the $9.6 million refinance of a retail property in Torrance, California. The subject property is a 67,302-square-foot multi-tenant retail center in the Palos Verdes submarket of the Los Angeles County South Bay. The subject was constructed in the 1950s, renovated in 2003, and is occupied by tenants such as Ace Hardware, Goodwill, Dollar Tree, Embroidme, and many more. Before the refinance was underway, roughly 30% of the property was impacted by a fire. Five of the 18 tenants had to have their spaces rebuilt, almost entirely, with the primary damage and start of the fire being located at the restaurant, Texas Looseys.

The exemplary property management team and strong borrowers were able to attract permanent financing versus high-yielding bridge terms. Financed with Life Insurance Company execution, PSRS provided its borrower a non-recourse, five-year loan term with a 30-year amortization and two years of interest only.

Bond-Friendly Employment Report: Last Friday's (5/3) US employment report was favorable for bonds, leading Treasury investors to anticipate a weaker economy and lower Fed Funds rates.

Non-Farm Payroll Figures: The non-farm payroll report revealed +175,000 new jobs, solid but significantly below market consensus estimates of +240k and last month's +303k.

Unemployment Rate: The unemployment rate rose to 3.9%, an increase of 0.1% from the previous reading.

Average Hourly Wages: Average hourly wages for the month showed a modest increase of only +0.2%, indicating moderate wage inflation, which is favorable for bonds.

Current Treasury Yields: As of this morning (5/6), 10-year Treasury yields stand at 4.50%, down by 11 basis points for the week. Meanwhile, 2-year rates are at 4.81%, reflecting a decrease of 17 basis points since last Monday's close of business.