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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