Permanent Financing Terms
Senior Debt: Permanent
| Eligible Properties | Office, Retail, Multifamily, Industrial, Warehouse, Self Storage, Manufactured Housing and Hotel |
|---|---|
| Loan Term | Any term from 5 – 30 years |
| Eligible Collateral | First Mortgage, recourse and non-recourse available |
| Loan Amount | $1,000,000 minimum, No maximum |
| Transaction Costs | Expenses include the cost of an Appraisal, Phase I Environmental and Engineering reports, title insurance and lender legal fees. |
| Interest Rate | Interest rates are fixed and locked usually two days before closing. Early and extended rate lock options available. |
| Minimum DSCR | 1.20x minimum (1.40x minimum for Hotels) |
| Loan To Value | Up to 80% for Multifamily, Anchored Retail, Office (Up to 75% for Hotels) CLTV up to 100% with mezzanine |
| Fees | Starting at 1% |
| Deposits | Non-refundable deposit of $5-35,000, depending on loan size and transaction type, to be used for third party reports |
| Loan Commitment | Usually within 10 business days of an executed application, receipt of related funds, requested Borrower data and third party reports. |
| Reports | Environmental: Phase I (including wetlands, asbestos, PCB’s, lead in water or paint and radon) Engineering: Property Condition Report, Seismic (as applicable) Appraisal: Full narrative FIRREA and USPAP compliant and MAI certified |
| Recourse | Usually non-recourse, with the exception of standard carve-outs, but depends on property type |
| Prepayment | Maximum two year lockout after sale of loan, then subject to defeasance, with the last three months open to prepayment with no fee. |
| Entity | Mortgagor may be in the form of a corporation, a limited liability company or a limited partnership, but in any case must be organized as a Special Purpose Bankruptcy Remote entity. |
Mezzanine Debt: Permanent
| Eligible Properties | Office, Retail, Multifamily, Industrial, Warehouse, Self Storage, Manufactured Housing and Hotel |
|---|---|
| Loan Term | 5-15 years |
| Eligible Collateral | Second lien position |
| Loan Amount | $1-10 million |
| Transaction Costs | If done simultaneously with senior loan, third party fees are usually limited to legal and possible second valuation. |
| Interest Rate | 11.75%-18% |
| Amortization | Up to 30 years, depending on senior note. |
| Loan To Value | Up to 95% CLTV (total capital stack) |
| Fees | As low as 3% of total loan amount or commitment |
| Deposits | If done in conjunction with senior financing, no additional deposit required. If done as a separate transaction, deposit is 10% of total anticipated success fee. |
| Loan Commitment | Usually within 10 business days of an executed application, receipt of related funds, requested Borrower data and third party reports. |
| Minimum DSCR | 1.07x minimum combined (Higher for hotels) |
| Recourse | Usually non-recourse, with the exception of standard carve-outs. |
| Prepayment | Flexible, as long as IRR is achieved |
| Entity | Mortgagor may be in the form of a corporation, a limited liability company or a limited partnership, but in any case must be organized as a Special Purpose Bankruptcy Remote entity. |
Commercial Condos
| Eligible Properties | Office and retail condominiums |
|---|---|
| Loan Term | 10-30 years |
| Eligible Collateral | First lien position |
| Loan Amount | $300,000-1.5 million |
| Transaction Costs | Appraisal, title fees, phase I and lender fees |
| Interest Rate | 7.5%-12% |
| Amortization | Up to 30 years, depending on property and credit |
| Loan To Value | Owner Occupied: Up to 97% CLTV (full doc) 80% (Stated/Stated) Investment: Up to 90% CLTV (full doc) 75% (Stated/Stated) |
| Fees | As low as 1% of total loan amount or commitment |
| Deposits | $5,000 to cover third party fees |
| Loan Commitment | Usually within 10 business days of an executed application, receipt of related funds, requested Borrower data and third party reports. |
| Minimum DSCR | 1.10x minimum combined |
| Recourse | Usually recourse |
| Prepayment | Lock-out based on fixed rate term |
| Entity | Mortgagor may be in the form of a corporation, a limited liability company or a limited partnership, but in any case must be organized as a Special Purpose Bankruptcy Remote entity. |