Eligible Properties:

3 Star, 4 Star and 5 Star properties.

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. 1.20-1.30* 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)

Underwriting Parameters:

Vacancy Rate – greater of 5% or market.

Minimum reserves - $50/pad. 

Subordinate Financing:

Generally not permitted

Escrows:

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

Monthly escrows for real estate taxes, property insurance 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