OFFICE PROPERTIES PURCHASE OR REFINANCE 

Eligible Properties:

Class A, Class B, and Class C

Loan Type:

10-year fixed rate mortgage (other terms may be available upon request)

Preferred Loan Size:

$1 million and larger
 

Maximum Loan:

Amount equal to the lesser of:

1. 75-80%* of appraised value; or

2. 1.25-1.30* debt service coverage

*depending on age and condition of property
 

Interest Rates:

Determined by market rates at the time of rate lock. Rates vary by loan-to-value ratio, debt service coverage and property quality
 

Amortization:

Up to 30-year schedule
 

Personal Recourse:

None, except for standard exceptions to non-recourse, which are the responsibility of the Key Principal(s)
 

Assumability:

Assumable, subject to lender's approval and a 1% transfer fee
 

Prepayment:

Standard defeasance (yield maintenance options may be available)
 

Subordinate Financing:

Generally not permitted
 

Underwriting Parameters:

Vacancy – greater of 5-10% or market.

Minimum reserves - $.20/sf
 

Escrows:

125% of estimated cost of required repairs, if any, as determined by physical inspection

Monthly escrows for real estate taxes, property insurance, tenant improvements and leasing commissions and replacement reserves
 

Application Fee:

Based on estimated underwriting costs for appraisal, architectural/engineering report, environmental assessment and other loan processing costs
 

Financing Fee:

Negotiable
 

Closing Expenses:

Standard transaction costs, including legal fees, title insurance and survey
 

Preliminary Submission Package:

Include the following in your request for a loan quote:

1.     Property description and location map

2.     Representative color photographs

3.     Current rent roll and year-to-date operating statement

4.     Operating history - prior 3 years, if available

5.     Current year operating budget

6.     Existing debt and cost basis

7.     Sponsor resume