OCR Text |
Show Page 10b The Enterprise Review, July 14, 1976 Granted Private Club License TAe Collector Stiff Mortgage Rates Prevail For the second month in a row, mortgage rates on g properties income-producin- have stiffened, Advance Mortgage Corporation re- ported today. This is a blow to the weak recovery now taking place in these construction sectors. The - sharpest - rate increase a full 14 was on projects secured by strong tenant credit, Advance Mortgage reported in its monthly survey of benchmark mortgage rates. These have been income the most sought-afte- r loans throughout the past two proyears. (Credit-secure- d cenbe jects may shopping office ters, buildings or industrial buildings.) Rates on apartment mortgages held steady after increasing fractionally the month before. However, said Advance Mortgage vice president-income loans Philip H. Kozloff, these rates are already too high for new complexes to make economic sense in most areas of the country. In a novel switch from the some prevailing pattern, lenders in some regions are offering lower rates for loans that can be funded in 1977 than for loans (on existing properties) that must be disElsebursed immediately. where some lenders continue - to pay premiums in the form of lower rates for the chance to disburse their money immed-- . This has been the iately. pattern for the past two years. As was the case a month ago, the recent mortgage rate movements do not reflect supply and demand, Kozloff said. Income-mortgag- e funds are ample, nearly all historical A new private club, to be benchmark rate for apartment - 4 mortgages was 2 unchanged from a month ago. at the It was a firm 2 end of April. Its rate for mortgages on 9-3- 9-1- 9-1- medium-size- shopping d centers was 2 in the up from a firm 2 two previous months. Its benchmark rate for lenders are aggressively seek- projects secured by strong 4 ing loans and the supply of tenant credit was a projects which are feasible at up from 9 - 4 the current rates is limited. month and two months ago. Standards for loan approval The benchmark rates remain very high. Only in represent Advance MortCalifornia is the surplus of gage's best judgment of typilendable funds shrinking. cal current rates for typical rates reflect mortgages on new construcMortgage the bond market options of the tion from the institutional life insurance companies who investors now in the market. are the most aggressive Rates and conditions for in lenders the current individual loans may vary up Kozloff said. or down from the benchmarks market, Rates are likely to depending on such factors as flutter in sympathy as corporregion, location, size, delivery ate bond yields bob up and date, tenant credits and lease down over the next few terms, e ratio, months. etc. Some lenders expect Advance Mortgage Corpin both to markets yields oration, the nations second decline next year, Hence the largest mortgage banker, is a occasional premium for imsubsidiary of Citicorp, New mediate delivery. York. This decline may well come sooner possibly before the fourth quarter of this year. Benchmark Rates 9-3- 9-1- 4, 9-1- 9-1- -9- 9-1- -12, loan-to-valu- and Robert Raybould, a financial consultant, are partners in the Gene Fullmer, former middle weight boxing champion of the world, will soon open a restaurant in Salt Lake City to be called none other than Gene Fullmers Celebrities Restaurant. Fullmer and John Olsen, former director of sales and marketing for the Salt Lake Hilton, will lease the restaurant on a 20 year contract from Dunn Properties, San Francisco, California. Fullmer hopes the family restaurant, now under con struction at 7200 So. 345 W., will open in early September. Restaurant decor will be designed around the fight game past and present. Patrons will select seating from the Neutral Comer, Madison Square Garden, Ring Side Seats or Box. Seats. The menu, Fullmer said, will look like a fight ticket with meals ranging from Light Weight to Heavy Weight and features the Champ Burger. MORTGAGE RATES Advance's end-of-Ju- conditioning FHA 8.5 Vi VA 8.5 ne Buyers Plan Rennovation for Judge Building attorney Boxer to Open Eatery - FHAVA points Lender Owners of the Boston Building have added another fortress to their downtown empire with the recent purchase of the Judge Building on the southeast comer of Main and The group paid Broadway. $800,000 for the 100,000 square foot building. Wallace A. Wright, Salt Lake City developer, J. Gary Sheets of Coordinated Financial Services, Dean Larsen, an called The Collector, will be established in the Commercial Exchange Building, 32 East Exchange Place. During a public hearing held last week to consider its license, it was pointed out that the BFW, located at 44 East 4th South, had been granted its license on a temporary basis. It had been a victim of the fire at the Congress Hotel last year. Representatives of the BFW were instructed to find another location, and city commissioners ordered the city license department to grant a permanent license to The Collector. According to city ordinances, no more than eight private clubs or taverns may be located within one block in the downtown area. Harold Hill, manager of the Commercial Building, said he expects the second floor ballroom, where The Collector will be located, to be ready for occupancy December 1. consists of Hill said. The former owner, Surety Life, began modernizing the build- window units, ing, said Hill, and the new owners will continued the process. Vacancy Rates Vacancy rates in older buildings, on the average, are high. According to an economic base study recently commissioned by the Salt lake City Redevelopment Agency, venture. buildings constructed between 1890 and 1939 have a 43 think underThey they stand older buildings, and percent vacancy rate. Hill said the Judge Building, built they are a good investment, said Harold Hill, manager of in 1909, was only 25 percent the groups downtown office vacant. buildings. In addition to the Commercial Gub Judge and Boston Buildings, the group also owns the Commercial Club Building. The Commercial Club new owners building is currently nearing Hill said the intend to spend $100,000 to the end of a long renovation process. Hill said a lease for improve the Judge Building. Most of the present air continued on page 12b Advance Mortgage Corp. American Home Mortgage American S & L American Equity Corp. AMFAC Mortgage Bettilyon Mortgage Loan Co. Colwell Company Commercial Security Bank Deseret Federal S&L Federal Building and Loan First Federal S&L First Security Bank First Security State Glenn Justice Mortgage Home Benefit S&L Lomas & Nettleton Co. Lombard Mortgage & Thrift Miller & Viele Mortgage Prudential Federal S&L State S&L Tracy Mortgage United S & L Utah Mortgage Loan Valley Mortgage Corp. Walker Bank & Trust Western Mortgage Loan Corp Western Pacific Financial Western S&L Zions First National Zions Mortgage 3.5-4.2- 5 3.75-4.2- 5 4.50 4.50-5.0- 0 3.25-4.5- 0 3.50 3.50-4.0- 0 4.50-5.0- 0 4.00-5.0- 0 5.00 6.00 4.50-5.0- 0 conventional rate 9.300 9.300 9.000 None None 9.250 9.100 9.375 9.000 9.000 9.000 9.250 4.00-5.0- 0 9.000-9.50- 0 3.50-4.0- 0 9.000-9.50- 0 4.0-5.0- 0 9.250 Will Not Quote 4.00-4.5- 0 3.50 6.00 None None 9.375 9.250 9.000-9.20- 0 4.00-5.0- 0 9.000-9.50- 0 3.50 9.000 9.250 3.50-4.5- 0 4.00 9.250-9.50- 0 5.00-6.0- 0 9.000-10.00- 0 3.50-4.5- 0 9.250 None 3.75 None 9.000-9.50- 4.50 9.250 3.25-4.2- 5 9.000-9.25- 0 0 These rates were obtained by telephone conversation with the above institutions. 'The rates are correct to the best of our knowledge but their accuracy cannot be guaranteed. |