Eligible Locations:

Strong/Stable primary and secondary markets- No tertiary markets. 150,000+ population within 5 mile radius of the asset.

Eligible Transactions:

Acquisition or refinance of existing stabilized income-producing properties - no earn-outs

Eligible Properties:

Multifamily, multi-tenant office, retail, warehouse, industrial, credit singe tenant, also select flagged hotels.

Properties that are Not Eligible :

Non credit single tenant, restaurant/bar, church/school/day care, funeral home, dry cleaner; any automotive fuel/service/repair; bed & breakfast; co-ops, rest/nursing home, health care; raw land; single family homes; no properties with high vacancy, environmental contamination, needing substantial rehab or tenant fit-up.

Transaction Size:

$5 million to $35 million

LTV [The lesser of as-is appraised value or purchase price]

Up to 75% for multifamily office, retail, industrial/warehouse;
Up to 70% for hotels.

Security:

First mortgage lien on the subject property, assignment of leases and rents, UCC on other property collateral, [NO personal guarantee].

Ownership:

Single asset, special purpose entity (Corp, GP, LP, LLC, etc.)

Application fee:

Fee of $2,000 to $3,500 is due with the signed Application depending on property location and loan size.

Commitment Deposit

$12,000 to $15,000, payable upon acceptance of Loan Commitment depending on 3rd party costs, legal and closing. Unspent balance applied towards Origination Fee or refunded at closing.

Origination Fee:

Based on each transaction

Transaction Expenses

From $10,000 to $15,000 to include 3rd party costs (appraisal, phase 1 environmental & property condition assessment), legal and closing, depending on loan size and property type.

Loan Spread:

Fixed over applicable index, depending on fixed rater period selected, LTV, property type, DSC, borrower credit, and prepayment penalty.

Amortization

30 years

DSC:

1.20x multifamily, office, retail and industrial/warehouse; 1.30x hotel.

Loan Term:

5 or 7 year term based on fixed rate period selected – balloon at end of loan term.

Non-Recourse:

No personal recourse to principals for loan. Traditional "Bad Boy" carve-outs are required for waste, hazardous substances, etc.

Second mortgage:

Not permitted

Prepayment Penalties

5 year term: Year 1&2- locked out; Year 3-2 points; Year 4-1 point; Year 5-open

7 year term: Y ears 1, 2 & 3 - locked out; Year 4-3 points; Year 5-2 points; Year 6-1 point; Year 7- open

Underwriting:

Full documentation on borrower and property.

Closing time:

45 days from completed Application