| Loan Amount: | $750,000 and larger |
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| Market: | Nationwide |
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| Spreads: | 200 to 300 basis points over corresponding index |
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| Index: | Typically, US treasury (other indexes may be used on a case by case basis) |
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| Loan Term: | 5, 7 or 10 years |
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| Amortization: | Up to 30 years |
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| Prepayment: | Typically a lock out period followed by a yield maintenance formula or defeasance option |
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| Recourse: | Non-recourse, except for standard lender carveouts |
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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 125% (may be higher in certain markets) |
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| Loan to Value: | Up to 80% of appraised value (65% to 75% in some markets) |
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| Occupancy: | Properties must be 85% physically occupied at loan funding and for the 90 day period prior to commitment |
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| Assumability: | Yes, one time right subject to lender approval and the payment of a processing fee and a 1% assumption fee |
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| Reserves: | Tax and insurance escrows are required. Replacement reserves and repairs required as determined by the engineer’s report. |
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| Loan Costs: | The borrower is responsible for all legal and third party expenses. |
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| Closing: | 45 to 60 days after acceptance of the application and deposit |
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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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