Use tenant's credit rating to qualify for the loan
| Loan Amount: |
$1 million to $300 million; single properties or multi-property portfolios. |
| Property Types: |
Single or Multi Tenant Retail, Warehouse/Distribution and Corporate Office properties on separate tax parcel. |
| Term/Amortization: |
Typically fully amortizing with Lease term or amortization beyond loan term. |
| Interest Rate: |
"On-the-run" UST (matched to average life) plus a spread. Interest calculation is 30/360. |
| Maximum LTV: |
No traditional LTV restrictions. (not to exceed 100% LTV). |
| Minimum DSCR: |
1.00x to 1.15x for leases without landlord obligations; 1.05x for all others. |
| Residual Value Insurance: |
Residual Value Insurance (RVI) will be required for amortization that goes beyond the loan term. NO EXCEPTIONS. |
| Lease Enhancement Insurance: |
If required - 40 basis points. One-time cost at closing. |
| Tenant Credit Ratings: |
BBB or better (Moody's or S&P's) |
| Rate Lock: |
Locked at commitment. |
| Escrows: |
Dependent upon landlord obligations. |
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| Ownership Interest: |
Special Purpose Bankruptcy Remote Entity (SPE). |
| Liability: |
Non-recourse, except for standard carve-outs. |
| Time to Close: |
30 to 60 days, subject to receipt and review of due diligence materials. |
| Lender Fees: |
1%-3% |
| Closing Fees |
$10,000 - $30,0000 |
| Third Party Reports: |
Appraisal and Environmental Reports (plus Seismic if in an earthquake zone). Engineering report not required. |
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