ELIGIBLE PROPERTIES:
Apartments which are existing, recently completed (both newly constructed or substantially rehabilitated). Properties must have a minimum occupancy of 90% at the time of commitment and the preceding three-month period.
LOAN TYPE:
Balloon mortgages with a 5, 7, 10, 15 or 18-year term.
Also 20, 25 and 30-year fully amortizing structures.
PREFERRED LOAN SIZE:
$3 million and larger.
MAXIMUM LOAN:
Amount equal to the lesser of:
- 80% of appraised value; or
- 1.25 debt service coverage.
INTEREST RATES:
Determined by market rates at the time of rate lock. Rates vary by loan-to-value ratio, debt service coverage and property quality.
AMORTIZATION:
Up to 30 years.
PERSONAL RECOURSE:
None, except for standard exceptions to non-recourse which are the responsibility of the Key Principal(s).
ASSUMABILITY:
Assumable, subject to CWCapital approval and a 1% transfer fee.
PREPAYMENT:
Yield maintenance or defeasance options.
SUBORDINATE FINANCING:
Fannie Mae Supplemental Loans (second mortgages) available 12 months after initial loan closing.
Supplemental loans can be provided on a fixed or adjustable-rate basis.
ESCROWS:
125% to 150% of estimated cost of required repairs, if any, as determined by physical inspection.
Monthly escrows for real estate taxes, property insurance and replacement reserves.
APPLICATION FEE:
Based on estimated underwriting costs for appraisal, architectural / engineering report, environmental assessment and other loan processing costs.
FINANCING FEE:
Negotiable.
CLOSING EXPENSES:
Standard transaction costs, including legal fees, title insurance and survey.
PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:
- Property description and location map.
- Representative color photographs.
- Current rent roll and year-to-date operating statement.
- Operating history - prior 3 years, if available.
- Current year operating budget.
- Existing debt and cost basis.
- Sponsor resume.
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