Retail – Loan Underwriting Guidelines
Please incorporate the below minimum guidelines when you prepare and submit your proforma for underwriting approval:
| Rental Income: | Based upon current rent roll annualized with vacant space calculated at market rents | |
|---|---|---|
| (+) | Percentage Rents: | 0-50% of prior year’s actual percentage rents |
| (-) | Vacancy: | Equal to the greater of the actual vacancy or a minimum of 5% of space for anchored space and 10% for non-anchored space |
| (-) | Management Fee: | Equal to the greater of the actual management fee of 5% |
| (-) | Capital Reverses: | Typically $0.20 per square foot minimum depending upon property age and condition |
| (-) | Leasing and Tenant Improvement Reserves: | Reserves subject to market rates applied to rollover tenants, commissions and tenant improvements. Additional reserve deposits may be required based on anticipated rollover costs. |
| Equals: | Net operating income |