| Loan Amount: |
$750,000 and larger |
| Market: |
Nationwide |
| Loan Term: |
7 to 10 year balloon and 15 year self-amortizing terms |
| Amortization: |
Up to 25 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 130% to 135% |
| Loan to Value: |
Up to 75% based on a MAI appraisal |
| Subordinate Financing: |
Prohibited |
| Occupancy: |
Demonstrated stable history with a minimum 85% economic occupancy |
| Assumability: |
Yes. One time right with lender’s approval and the payment of a 1% fee and out-of-pocket costs. |
| Escrows: |
Required for taxes, insurance and replacement reserves. May be required for re-leasing costs depending on the roll-over schedule. |
| Rate Lock: |
Rates are fixed five days prior to closing |
| Application Fee: |
$5,000, payable to the lender |
| 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. |
