July 3, 2008

Multi-Family Loan Programs > $3 Million

Agency Lenders Portfolio Lenders*
Term Leverage Max. Interest Rates Leverage Max. Interest Rates
5 Yr. 80% 6.01% to 6.16% 75% 6.05% to 6.25%
7 Yr. 80% 6.08% to 6.17% 75% 6.40% to 6.65%
10 Yr. 80% 6.15% to 6.36% 75% 6.55% to 6.85%
15 Yr. 80% 6.57% to 7.17% 75% 6.85% to 7.35%
*Rates based on Act/360
Multi-Family Loan Programs < $3 Million
Fixed Rate Agency Lenders Portfolio Lenders*
Term Leverage Max. Interest Rates Leverage Max. Interest Rates
3 Yr. 80% 5.95% to 6.39% 75% 5.90% to 6.25%
5 Yr. 80% 5.93% to 6.31% 75% 6.05% to 6.35%
7 Yr. 80% 5.95% to 6.25% 75% 6.40% to 6.65%
10 Yr. 80% 6.09% to 6.39% 75% 6.55% to 6.85%
15 Yr. 80% 6.65% to 7.56% 75% 6.85% to 7.35%
*Rates based on Act/360
Commercial Loan Programs
Fixed Rate Portfolio Lenders* Index Rate as of 7/3/2008

Term Leverage Max. Interest Rates

5-Year Treasury: 3.28% 10-Year Treasury: 3.97%
5 Yr. 75% 6.25% to 6.55%
5-Year Swap: 4.28% 10-Year Swap: 4.74%
7 Yr. 75% 6.45% to 6.65%
Prime: 5.00% LIBOR: 3.12%
10 Yr. 75% 6.65% to 6.90%
15 Yr. 75% 6.95% to 7.45%
Bridge Floating Leverage Max. Spread Over Libor
Stabilized 75% 225 to 300
Re-Position 80% 275 to 350
(*Portfolio Lenders include Banks, Life Insurance Companies and Credit Unions)
Economic Commentary

7-3-08 While mortgage rates remained somewhat unchanged, concerns

about inflation increased this week. Oil prices hit yet another record high at
$145 per barrel and U.S. employment dropped for the sixth month in a row,
indicating that the economic slowdown is continuing. CMBS lenders are still
in the market at 300 plus basis point spreads that put them in the low-7
percent rates, which are getting closer to being competitive as 10-year
portfolio rates move into the high-6 percent area.

Recent Transactions
2001 W. Mission 150 Acalanes Drive 6131 West Thomas Rd. University Square
Office - Class B Multi-Family Mid Rise Multi-Family Garden Apt. Retail - Regional Mall
Pomona, CA Sunnyvale, CA Phoenix, AZ San Diego, CA
$8,000,000 $9,200,000 $7,309,000 $6,000,000
Refinance Refinance / Permanent Purchase / Permanent Fee Only
Interim/Bridge Financing 5.56% Interest rate 5.95% Interest rate Preferred Equity

For more information, contact:

William Hughes
Senior Vice President / Managing Director
Newport Beach, CA
Office: (949) 851-3030