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