FLOATING-RATE PROGRAM:
Designed for Borrowers with stable cash flowing properties that want more optionality than available in fixed-rate financing. Non-recourse financing with leverage up to 75% LTV.
PROPERTY TYPES:
Office, Retail, Multifamily and Industrial. Hotels (selective, full service only).
PREFERRED LOAN SIZE:
$10 million to $35 million with other loan amounts considered on a case by case basis.
TERM:
3 year terms with two 1-year extension options.
LEVERAGE:
Not greater than 75% LTV / LTC (70% for Hotels).
DSCR:
Not less than 1.10x using 8.50% constant; 1.20x on Hotels.
PROPERTY QUALITY:
High quality, stabilized assets with solid tenancy and no major rollover risk. No non-credit, single tenant deals.
MARKETS:
Strong/Stable primary and secondary markets - No tertiary markets.
SPONSORSHIP:
High quality, experienced real estate owners and operators with strong credit and financials.
ASSUMABILITY:
Assumable with Lender’s Consent.
SPREADS:
Highly competitive. Subject to deal specifics.
ORIGINATION FEES:
1% (paid by Borrower).
EXIT FEES:
½ to 1% (paid by Borrower).
EXTENSION REQUIREMENTS / FEES:
1/4pt extension fee is required for each 1-year extension. To extend, loan must achieve a 1.20x DSCR utilizing an 8.50% constant (this may be achieved through T-12 performance or pay down of the loan at the time of extension).
PREPAYMENT TERMS/ PENALTIES:
3 year term: Year1 - locked out; Year 2 - 1pt; Year 3 - open.
LIBOR CAPS:
Required on all deals. Caps are sized to achieve a 1.10x DSCR.
RESERVES:
Taxes, insurance, rollover and replacement reserves will be underwritten and collected.
OTHER STRUCTURE:
No guarantees, Master Leases or earnouts; carveouts to a warm body or entity with strong financials required.
MEZZANINE DEBT:
Mezzanine debt may be considered on a case by case basis.
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