Capital Alert - 8/22/2008

August 22, 2008 Multi-Family Loan Programs > $3 Million Agency Lenders Term 5 Yr. 7 Yr. 10 Yr. 15 Yr. *Rates based on Act/360 Fixed Rate Term 3 Yr. 5 Yr. 7 Yr. 10 Yr. 15 Yr. *Rates based on Act/360

Leverage Max. 80% 80% 80% 80%

Interest Rates 6.18% to 6.33% 6.17% to 6.47% 6.35% to 6.57% 6.73% to 7.02%

Portfolio Lenders*

Leverage Max. 75% 75% 75% 75%

Multi-Family Loan Programs < $3 Million Agency Lenders Leverage Max. 80% 80% 80% 80% 80%

Interest Rates 6.20% to 6.59% 6.23% to 6.60% 6.30% to 6.60% 6.34% to 6.64% 6.90% to 7.77%

Interest Rates 6.05% to 6.25% 6.50% to 6.70% 6.65% to 6.90% 6.95% to 7.45%

Portfolio Lenders*

Leverage Max. 75% 75% 75% 75% 75%

Interest Rates 5.29% to 6.25% 6.05% to 6.35% 6.50% to 6.70% 6.65% to 6.90% 6.95% to 7.45%

Commercial Loan Programs Fixed Rate

Index Rate as of 8/22/08

Portfolio Lenders*

Term Leverage Max. Interest Rates 3-Year Swap: 5 Yr. 75% 6.35% to 6.55% 5-Year Swap: 7 Yr. 75% 6.55% to 6.75% 7-Year Swap: 10 Yr. 75% 6.75% to 6.60% 10-Year Swap: 15 Yr. 75% 7.05% to 7.75% Prime: Bridge Floating Leverage Max. Spread Over Libor Stabilized 75% 225 to 300 Re-Position 90% 275 to 350 (*Portfolio Lenders include Banks, Life Insurance Companies and Credit Unions)

3.75% 4.12% 4.37% 4.59% 5.00%

5-year Treasury: 7-year Treasury: 10-Year Treasury: 30-Day LIBOR: 90-Day LIBOR:

3.13% 3.55% 3.87% 2.47% 2.81%

Economic Commentary

8-22-08 Multi-family interest rates declined slightly during the week with interest rates from other sources holding steady. The 10-year U.S. Treasury was up 2 basis points for the week, closing at a yield of 3.87 percent`. In spite of inflation running at a 17-year high, investors speculated that the Fed will not move soon to increase rates, instead relying on slower growth to temper inflation.

Recent Transactions 7012-7098 Bandera Rd. Retail -Strip Center San Antonio, TX $10,600,000 Adjustable Interest Rate 310 bps, 1-mos. Libor, dscr 1.3

Third Street Promenade Retail - Neighborhood Santa Monica, CA $10,100,000 5.99% Interest Rate 120-mos. term/120-mos. amort.

Burger King STNL Daphne, AL $2,010,000 LTV: 64%, 310 bps, dscr 1.6 7-mos. term/360-mos. amort.

17229 Lemon Street Retail - Strip Center Hesperia, CA $4,750,000 6.73% fixed LTV LTV - 70%

For more information, contact: William Hughes Managing Director / Senior Vice President Newport Beach, CA Office: (949) 851-3030 [email protected] Terms, rates and conditions subject to change.

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