| Loan Amount: | $1,000,000 and larger |
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| Loan Term: | 7 to 10 year balloon and 15 year self-amortizing terms |
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| Amortization: | Up to 30 years |
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| Prepayment: | Typically, a 3 year lock out period, followed by a yield maintenance formula or defeasance option |
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| Recourse: | Non-recourse, except for standard lender carveouts (e.g. fraud, misapplication of funds, waste, property taxes, and environmental issues) |
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| Borrower: | All properties must be owned by a single asset or single purpose entity |
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| Debt Service Coverage: | Minimum 140% |
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| Reserve Replacement: | A minimum Replacement Reserve Escrow for the property will be required at an amount equal to 5% of the effective annual gross revenue. This interest earning escrow will be funded at closing and on an ongoing monthly basis. The borrower may request withdrawals of funds on a monthly basis to replace FF&E and other capital expenditures. |
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| Loan to Value: | Up to 70% loan to value |
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| Subordinate Financing: | Prohibited |
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| Occupancy: | 60% minimum average historical occupancy rate |
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| Assumability: | Yes, one time to a qualified buyer approved by Lender for a 1% assumption fee and out-of-pocket costs |
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| Escrows: | Required for taxes, insurance and replacement reserves. An additional escrow may be required to as determined by the engineer’s report. |
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| Rate Lock: | Available upon receipt of complete application, subject to borrower qualification. |
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| Loan Costs: | The borrower is responsible for all legal and third party expenses. |
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| Processing Deposit: | Approximately $20,000 or other such amount determined by the lender to cover the costs of all third party reports (including environmental, building condition and appraisal), travel expenses and other out-of-pocket expenses |
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| Financing Fees: | 1% of the loan amount, payable upon acceptance of loan commitment |
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| Processing Time: | Typically 45-60 days after receipt of all required due diligence documentation |
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| Underwriting Requirement: | All final submissions must include an Argus Valuation-DCF data file. If you have not modeled your submitted project in Argus Valuation-DCF, you must engage us or a third party to model your project. However, on a preliminary basis, please feel free to submit your proforma in any format. |
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