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Commercial Loan Programs

 

 

Multi Family Property

Multi Family LIHTC Property

Office Property

Anchored Retail Property

Unanchored Retail Property

Single Tenant Property

Hotel Property

Assisted Care Living Facility Property

Acquisition and Development

Mobile Home Parks Property

Self Storage Facilities Property

Small Business Finance

Specialty Property Type

Construction Loan

Commercial Agricultural Property

Gentleman Agricultural Property

Industrial Property

Other Property

Standard Terms and Conditions

 

commercial loan, commercial loans, california real estate finance

 

 

Multi-Family Property Program

Property Type: Multifamily properties of 20 units or more.
Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
Loan Amount: $500,000 to $35,000,000 per property. Larger loans are case by case.
Term: Ten (10) Years.
Amortization: Up to Thirty (30) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
Maximum LTV:

80%

Minimum DSCR: 1.20:1 minimum
Recourse: Non-Recourse, except for standard lender carve-outs, which require 100%.
Commercial Space: Permitted providing commercial space does not exceed 20% of square footage, or 20% of effective gross income. If either occurs, pricing and structure may change.
Master Meters: Acceptable.
Replacement Reserves: .Typically, minimum of $200 per unit annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
Military/Students: Allowed subject to higher debt coverage ratio and risk based pricing. Student properties must be leased as units, not as rooms, and guaranteed by parents.
Interest Rates: Call for current rates. Rate Buy-Downs are available.

ALL terms are subject to change.

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Multifamily LIHTC Property Program (Low Income Housing Tax Credit)

Property Type: Multifamily properties of 20 units or more.
Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
Loan Amount: $1,500,000 to $35,000,000 per property. Larger loans are case by case.
Term: Ten (10) to Eighteen (18) Years.
Amortization: Up to Thirty (30) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
Maximum LTV: 85%
Minimum DSCR: 1.15:1 minimum, preferred 1.20:1 to 1.25:1.
Recourse: Non-Recourse, except for standard lender carve-outs, which require 100%.
Commercial Space: Permitted providing commercial space does not exceed 20% of square footage, or 20% of effective gross income. If either occurs, pricing and structure may change.
Master Meters: Acceptable.
Replacement Reserves: Typically, minimum of $200 per unit annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
Other Conditions: See Standard Terms and Conditions.
Interest Rates: Call for current rates. Rate Buy-Downs are available.

ALL terms are subject to change.

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Office Property Program

Property Type: Class "A", "B", and "C" suburban and central business district multi-tenant properties that have good location, occupancy, and maintenance.
Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
Loan Amount: $500,000 to $35,000,000 per property.
Term: Ten (10) Years.
Amortization: Twenty-five (25) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
Maximum LTV: 80%
Minimum DSCR: 1.25:1
Recourse: Non-recourse, except for standard lender carve-outs, which require 100%.
Assumption: Permitted with the payment of an Assumption Fee, typically 1% plus legal expenses, and with Lender's credit approval.
Replacement Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
Subordinate Financing: Typically, not permitted. Lender will consider prior approval with fully subordinated, non-foreclosable cash flow only.
Prepayment Penalty: Typically, one-half of the loan term requires a lockout followed by yield maintenance, or defeasance, to term. No penalty if prepaid during the final 3 - 6 months of term.
Interest Rates: Call for current rates. Rate Buy-Downs are available.

ALL terms are subject to change.

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Anchored Retail Property Program

Property Type: Anchored multi-tenant retail properties that have good location, occupancy, and maintenance.
Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
Loan Amount: $500,000 to $35,000,000 per property.
Term: Ten (10) Years.
Amortization: Up to Thirty (30) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
Maximum LTV: 80%
Minimum DSCR: 1.25:1 minimum.
Recourse: Non-recourse, except for standard lender carve-outs, which require 100%.
Replacement Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
Tenant Improvements/
Leasing Commission:
Underwriting requires the use of tenant improvements and leasing commissions determined by the lease maturities of the specific property. An Escrow may be required based upon the rollover risk analysis.
Other Conditions: See Standard Terms and Conditions.
Interest Rates: Call for current rates. Rate Buy-Downs are available.

ALL terms are subject to change.

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Unanchored Retail Property Programs

Property Type: Unanchored multi-tenant retail and outlet mall properties that have good location, occupancy, and maintenance.
Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
Loan Amount: $500,000 to $35,000,000 per property.
Term: Ten (10) Years.
Amortization: Up to Thirty (30) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
Maximum LTV: 75%
Minimum DSCR: 1.30:1
Recourse: Non-Recourse, except for standard lender carve-outs, which require 100%.
Replacement Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
Tenant Improvements/
Leasing Commission
Underwriting requires the use of tenant improvements and leasing commissions determined by the lease maturities of the specific property. An Escrow may be required based upon the rollover risk analysis.
Other Conditions: See Standard Terms and Conditions.
Interest Rates: Call for current rates. Rate Buy-Downs are available.
Rent Roll: Most recent detailed year end, trailing twelve months, and current (not more than 30 days old)

ALL terms are subject to change.

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Single Tenant Property Program

  Property Type: Class "A", "B", and "C" suburban and central business district single tenant properties that have good locations and are oc cupied by stock exchange listed public companies. Investment Grade (Standard & Poors Rated "BBB" or better) and Non-Investment Grade tenants with good financial strengh and potential are acceptable.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges.
  Loan Amount: $500,000 to $3,000,000 per property. Loans of $3,000,000 to $20,000,000 available case-by-case.
  Term: Primary Base Term of the Lease.
  Amortization: Twice the Primary Base Term of the Lease.
  Maximum LTV: 75% - 80%
  Minimum DSCR: Varies based on the Investment Grade Rating of the tenant.
  Recourse: Non-Recourse except for standard lender carve-outs, whicn require 100%.
  Assumption: Permitted with the payment of an Assumption Fee, typically 1% plus legal expenses, and with lenders approval.
  Borrowing Entity: Single Asset/single purpose structure that is Banktruptcy Remote.
  Documentation: Standard note and mortgage affidavits, and ancillary documents.
  Rent Roll: Lease Document
  Replacement Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or as scheduled in the Prpoerty Condition Assessment Report. Monthly escrow is required, unless specifically covered in the Lease as the responsibility of the tenant.
  Tax & Insurance: Monthly escrow is required, unless specifically covered in the Lease as the responsibility of the tenant.
  Vacancy: Dependant upon the Investment Grade Rating, or financial strength of the tenant. Typically, an economic minimum of 5%.
  Operating Statements: Required in the event the Lease is a Gross Lease where expenses are the responsibility of the landlord.
  Survey: ALTA standard required and ordered by lender by an approved surveyor.
  Title Insurance: ALTA standard with applicable riders.
  Subordinate Financing: Typically, not permitted. lenders will consider prior aproval with fully subordinated non-forceclosablr cash flow o nly.
  Prepayment Penalty: Lockout for the first one-half of the loan term, followed by full yield maintenance to term. No penalty if prepaid dur ing the fimal 6 months of term.
  Application Fee: None.
  Commitment Fee: Two percent (2%) of the loan amount, or $25,000, whichever is greater, is due and payable upon the lender's issurance of t he Loan Commitment and the Borrower's acceptance. Such loan commitment fee shall be held in Lender's Escrow Accout and is refundable less third party expenses for the property inspection, the MAI appraisal, the Property Conditoin Assessment Report, and En viromental Site Assessment Phase I, underwriting and processing costs, legal fees, and other costs customary to the loan transaction. The remaining balance shall be credited or refunded at the loan closing.
  Third Party Reports: Includes Inspection, Environmental Site Assessment Phase I, Property Condition, and Appraisal. All Reports are ordere d, controlled, and completed through consultants preapproved and authorized by the lender. Costs are, typically, in the $7,500 range, dependent upon the location and complexity of the property.
  Legal: Typically range $5,000 to $7,500 dependent upon the complexity of the borrowing entity and property.
  Interest Rates: Rates are specifically quoted based upon the Investment Grade Rating, or financial strength and potential of the tenant. Rate Buy-Downs are available.

ALL terms are subject to change.

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Hotel Property Program

  Property Type: Full or Limited Service Franchised Hotels and Motels properties that have good location, occupancy, and maintenance.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges.
  Loan Amount: $1,000,000 to $35,000,000 per property. Larger loans are case by case.
  Term: Ten (10) Years.
  Amortization: Up to Twenty-five (25) years, typically, Twenty (20) years.
  Maximum LTV: 70%
  Minimum DSCR: 1.40:1 minimum, preferred 1.50:1 or better.
  Recourse: Non-Recourse, except for standard lender carve-outs, which are required 100%.
  Commercial Space: Permitted providing commercial space does not exceed 20% of square footage, or 20% of effective gross income. If either occurs, pricing and structure may change.
  Occupancy & ADR: Historical three years, most recent year-end, trailing twelve months, and current (not more than 30 days old) Occupancy and ADR Reports on a monthly basis with annual averages. Economic minimum of 40%, Actual, or Market, whichever is greater. Minimum 60% average historical occupancy required.
  Replacement Reserves: 5% minimum of Effective Gross Revenue annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
  Subordinate Financing: None permitted. FF&E cannot be financed or leased.
  Other Conditions: See Standard Terms and Conditions. Underwriting requires a minimum management fee and franchise fee.
  Interest Rates: Call for current rates.

ALL terms are subject to change.

 

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Assisted Care Living Facility (ACLF) Property Program

 

  Property Type: Assisted Care Living Facilities with private pay 70 units, or more, that have experienced ownership and management, good location, occupancy, and maintenance.
  Loan Security: First fee mortgage encumbering completed projects along with customary assignments and pledges.
  Loan Amount: $1,500,000 to $15,000,000 per property.
  Term: Ten (10) Years.
  Amortization: Twenty-five (25) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
  Maximum LTV: 70%
  Minimum DSCR: 1.40:1
  Recourse: Non-recourse, except for standard lender carve-outs which require 100% recourse.
  Assumption: Permitted with the payment of an Assumption Fee, typically 1% plus legal expenses, and with Lender's credit approval.
  Borrowing Entity: Single Asset/single purpose structure that is Bankruptcy Remote.
  Documentation: Standard note and mortgage affidavits, and ancillary documents.
  Rent Roll: Most recent detailed year end, trailing twelve months, and current ( not more than 30 days old ).
  Replacement Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
  Tax & Insurance: Monthly escrow is required.
  Vacancy: Economic minimum of 5%, actual, or market, whichever is greater. Minimum 85% average historical occupancy.
  Operating Statements: Three years of historical operating statements, tax returns, and current year-to-date.
  Survey: ALTA standard required and ordered by lender by an approved surveyor.
  Title Insurance: ALTA standard with applicable riders. Lender orders title through First American Title Insurance Company.
  Subordinate Financing: Typically, not permitted. Lender will consider prior approval with fully subordinated, non-foreclosable cash flow only.
  Prepayment Penalty: Lockout for one-half of the loan term followed by full yield maintenance to term. No penalty if prepaid during the final 60 days of the term.
  Application Fee: None.
  Commitment Fee: Two percent (2%) of the loan amount, or $25,000, whichever is greater, is due and payable upon the lender's issuance of the Loan Commitment and the Borrower's acceptance. Such loan commitment fee shall be held in Lender's Escrow Account and is refundable less third party expenses for the property inspection, the MAI appraisal, the Property Condition Assessment Report, and Environmental Site Assessment Phase I, underwriting and processing costs, legal fees, and other costs customary to the loan transaction. The remaining balance shall be credited or refunded at the loan closing.
  Third Party Reports: Includes Inspection, Environmental Site Assessment Phase I, Property Condition Assessment, and Appraisal. All Report s are ordered, controlled, and completed through consultants pre-approved and authorized by the Lender. Costs are, typically, in the $7,500 range, dependent upon the location and complexity of the property.
  Legal: Typically range $5,000 to $7,500 dependent upon the complexity of the borrowing entity and property.
Interest Rates: Call for current rates. Rate Buy-Downs are available.

ALL terms are subject to change

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Acquisition & Development Loan Program

  Property Type: Commercial and Residential properties that have good location, market feasibility, and no environmental risk.
  Loan Security: First fee mortgages encumbering projects along with customary assignments and pledges.
  Loan Amount: $2,000,000 to $35,000,000 per property and/or borrower. Prefer $4 million and up.
  Term: Negotiable based upon project and market study feasibility.
  Amortization: Negotiable based upon the project and market study feasibility.
  Maximum LTV: 65%.
  Minimum LTC: 65% of actual land and infrastructure costs.
  Recourse: Full Recourse for all Principals including the standard lender carve-outs.
  Other Conditions: Certain Standard Terms and Conditions also apply.
  Interest Rates: Case-by-Case.

ALL terms are subject to change.

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Mobile Home Parks Property Program

  Property Type: Mobile Home Park properties of 50 units, or more, with good locations, occupancy, maintenance, municipal utilities, paved streets and pad sites, amenities, and no park-owned units.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
  Loan Amount: $500,000 to $35,000,000 per property. Larger loans are case by case.
  Term: Ten (10) Years.
  Amortization: Up to Thirty (30) years, typically, Twenty-five (25) years.
  Maximum LTV: 80%
  Minimum DSCR: 1.25:1 minimum.
  Recourse: Non-Recourse, except for standard lender carve-outs, which require 100%.
  Commercial Space: Permitted providing commercial space does not exceed 20% of square footage, or 20% of effective gross income. If either occurs, pricing and structure may change.
  Replacement Reserves: Typically, minimum of $25 - $50 per pad site annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
  Seniors/Military/Students: Allowed subject to higher debt coverage ratio and risk based pricing.
  Other Conditions: See Standard Terms and Conditions.
  Interest Rates: Call for current rates.

ALL terms are subject to change.

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Self Storage Facilities Property Program

  Property Type: Self Storage properties of 500 units, or more, with good locations, construction, occupancy, and maintenance.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
  Loan Amount: $500,000 to $35,000,000 per property. Larger loans are case by case.
  Term: Ten (10) Years.
  Amortization: Up to Thirty (30) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
  Maximum LTV: 75%
  Minimum DSCR: 1.30:1 minimum.
  Recourse: Non-Recourse, except for standard lender carve-outs, which require 100%.
  Occupancy: Historical three years, most recent year-end, trailing twelve months, and current (not more than 30 days old) Occupancy with annual averages. Minimum 80% average historical occupancy required.
  Commercial Space: Permitted providing commercial space does not exceed 20% of square footage, or 20% of effective gross income. If either occurs, pricing and structure may change.
  Replacement Reserves: Typically, minimum of $25 - $50 per unit annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
  Other Conditions: See Standard Terms and Conditions.
  Interest Rates: Call for current rates.

ALL terms are subject to change.

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Small Business Finance Loan Program

Small Business loans are offered through a Small Business Administration Preferred Lender. These loans are available for real estate purchase, business acquisition, business expansion, leasehold improvements, debt refinance, business start-up, and real estate construction.
  Property Type: All owner occupied real estate property types which will qualify for financing under the Small Business Administration financing, SBA 7(a) and SBA 504 Loan Programs, including child care centers, franchises, gas stations, hotels, motels, manufacturing plants, medical offices, nursing homes, restaurants, and other similar real estate properties.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges.
  Loan Amount: $500,000 to $3,000,000 per borrower.
  Term: Up to Twenty-five (25) Years
  Amortization: Full Amortization with the term.
  Maximum LTV: Up to 100%
  Minimum DSCR: Varies based upon the property type.
  Recourse: Full Recourse to all principals is required.
  Prepayment Penalty: None.
  Other Conditions: Standard Terms and Conditions also apply
  Interest Rates: Competitive Rates. Call for current rates.

ALL terms are subject to change.

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Specialty Property Types

  Property Type: Branded Convenience Stores, Independent and Franchised Truck Stops, Car Washes, Automotive After Market, Independent and Franchised Restaurants, Day Care, Health Clubs, Funeral Homes, Medical Related Clinics, and Golf Course properties that have good location, sales, maintenance and no environmental risk. Preference to multiple properties and locations.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
  Loan Amount: $1,000,000 to $35,000,000 per property.
  Term: Leasehold: Ten (10) Years.
Fee Simple: Twenty (20) Years
  Amortization: Full Amortization with the term.
  Maximum LTV: 75%
  Minimum DSCR: 1.45:1
  Recourse: Non-Recourse, except for standard lender carve-outs, which require 100%. .
  Replacement Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
  Other Conditions: Requires that 10% of the loan amount to be pledged as Credit Enhancement. Standard Terms and Conditions also apply.
  Interest Rates: Call for current rates.

ALL terms are subject to change.

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Construction Loan Program

  Property Type: Apartments, Assisted Living Care Facilities, Hotels, and Truck Stops. Retail and Office Properties with substantial pre-leasing. Other property types are available on a case-by-case basis.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges.
  Loan Amount: $2,000,000 to $35,000,000 per property. Larger loans are case by case.
  Construction Term: Twelve (12) to Twenty-four (24) months.
  Mini-Perm Term Twenty-four (24) months to Thirty-six (36) months..
  Construction Amortization: None. Interest Only during the term.
  Mini-Perm Amortization: Twenty (20) Years.
  Maximum LTV: 75%.
  Maximum LTC: 80%
  Minimum DSCR: 1.25:1 minimum.
  Recourse: Full Recourse including standard lender carve-outs, which are required at 100%. Stabilization achievement during the mini-perm may allow a release of Recourse.
  Market Feasibility: A Market Feasibility is required that will support the construction of the property and its viability in the market.
  Subordinate Financing: None permitted. FF&E cannot be financed or leased.
  Other Conditions: A non-refundable application fee is required. Origination fees range from 3 points to 3 points. Each transaction may have specific lender requirements.
  Interest Rates: Call for current rates.

ALL terms are subject to change.

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Commercial Agricultural Property Types

  Property Type:

Farms/Ranches that are the primary or significant source of income that are operated as a commercial agricultural enterprise with a good location, sales, maintenance and no environmental risk. Dairy, feedlots, storage units, processing buildings, hog and poultry facilities are qualified properties.

  Loan Security:

First fee mortgages encumbering real estate and fixed improvements with customary assignments and pledges. Leaseholds considered on a case-by-case basis.

  Loan Amount:

$500,000 to $3,500,000 per property. Certain properties of less than 1,000 acres with high per acre values can qualify to a maximum of $6,000,000.

  Term:

Ten (10) to Fifteen (15) Years..

  Amortization:

Up to Twenty-five (25) Years.

  Maximum LTV:

70% maximum. Some properties are limited to 60% maximum..

  Minimum DSCR:

1.25:1

  Recourse:

Typically, Non-Recourse, except for standard lender carve-outs, which require 100%. Certain transactions will require Recourse.

  Replacement Reserves:

As scheduled in the Property Condition Assessment Report. Monthly escrow is required.

  Other Conditions:

Debt of Asset Ratio must be 50% or less. Standard Terms and Conditions also apply.

  Interest Rates:

Call for current rates.

ALL terms are subject to change.

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Gentleman Agricultural Property Types

  Property Type:

Farmettes/Ranchettes that are owner-occupied Hobby Farms, Country Squire, Gentleman Ranchers, and Part-time Farmers containing five (5) acres or more, with a good location, maintenance, no environmental risk and with outside income to support the debt.

  Loan Security:

First fee mortgages encumbering real estate and fixed improvements with customary assignments and pledges. Leaseholds considered on a case-by-case basis.

  Loan Amount:

$500,000 to $2,300,000 per property.

  Term:

Thirty (30) Years.

  Amortization:

Thirty (30) Years.

  Maximum LTV:

70% maximum, or 85% subject to Mortgage Insurance Limitations.

  Minimum DSCR:

1.25:1

  Recourse:

Recourse is required.

  Escrows:

Monthly escrow is required for taxes and insurance.

  Prepayment:

Closed for seven and one-half years, then subject to a Prepayment Penalty based up Yield Maintenance.

  Other Conditions:

Dwelling must be 30% of value, zoning must be agricultural use, and minimum Credit Score must be 620 or better. Standard Terms and Conditions also apply.

  Interest Rates:

Call for current rates.

ALL terms are subject to change.

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Industrial Property Program

  Property Type: Multi-tenant light industrial, warehouse, and office/warehouse properties that have good location, occupancy, and maintenance and no environmental risk.
  Loan Security: First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.
  Loan Amount: $500,000 to $35,000,000 per property.
  Term: Ten (10) Years.
  Amortization: Up to Thirty (30) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.
  Maximum LTV: 80%
  Minimum DSCR: 1.25:1
  Recourse: Non-Recourse, except for standard lender carve-outs, which require 100%.
  Replacement Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.
  Tenant Improvements/
Leasing Commission
Underwriting requires the use of tenant improvements and leasing commissions determined by the lease maturities of the specific property. An Escrow may be required based upon the rollover risk analysis.
  Other Conditions: See Standard Terms and Conditions.
  Interest Rates: Call for current rates.

ALL terms are subject to change.

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Other Property Types Program

Financing for Other Property Types not specifically covered in our Property Programs is available on a case-by-case basis.
We can provide financing for other property types, such as congregate care facilities, assisted living facilities, and nursing homes. Each of these property types is subject to a case-by-case analysis, terms, conditions, and available pricing.
Construction financing is available through a correspondent relationship for selected property types. This financing is subject to a case-by-case analysis, terms, conditions, and available pricing through our correspondent.
Forward Loan Commitments for the Permanent Loan These Forward Loan Commitments are subject to a case-by-case analysis, terms, conditions, and available pricing. The Forward Loan Commitment will require that the property be constructed to specifications, leased, occupied, and stabilized based upon the terms of the Forward Loan Commitment prior to funding. The permanent loan interest rate is offered at a basis point spread over the applicable Index and shall not be fixed until the funding of the permanent loan.

ALL terms are subject to change.

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Standard Terms and Conditions

Applicable to Multifamily, Anchored and Unanchored Retail, Office, Industrial, Mobile Home Parks, Hotel, and similar Properties.
  Borrowing Entity: A New Single Asset/Special Purpose Entity that is Bankruptcy Remote.
  Assumption: Permitted with the payment of an Assumption Fee, typically 1% plus legal expenses, and with lender's credit approval.
  Rent Roll: Most recent, detailed, year-end, trailing twelve months, and current (not more than 30 days old)
  Tax & Insurance: Monthly escrow is required.
  Vacancy: Underwritten economic minimum of 5% to 10%, Actual, or Market, whichever is higher. Minimum 80% average historical occupancy, which is 60%.
  Operating Statements: Three years of historical operating statements, trailing twelve months, tax returns, and current year-to-date.
  Documentation: Multifamily requires Standard FNMA note and mortgage with applicable riders. All other properties require standard note and mortgage affidavits, and ancillary documents.
  Survey: ALTA standard required and ordered by lender by an approved surveyor.
  Title Insurance: ALTA standard with applicable riders. Lender orders title through First American Title Insurance Company.
  Subordinate Financing: Typically, not permitted. Lender will consider prior approval with fully subordinated, non-foreclosable cash flow only.
  Prepayment Penalty: Closed with a lockout for one-half of the loan term, followed by full yield maintenance to term. No penalty if prepaid during the final 6 months of term.
  Application Fee: $3,500 to $10,000 required based upon each property size and complexity.
  Origination Fee: Pricing range is Par to two percent (2%) of the loan amount.
  Commitment Fee: A commitment fee deposit may be required dependent upon the transaction. The loan commitment fee is applicable to the origination fee, or refundable at the loan closing, according to the pricing and terms of the transaction.
  Third Party Reports: Includes lender's fees, inspection costs, Environmental Site Assessment Phase I, Property Condition Assessment, Appraisal, and any such related expenses. All Reports are ordered, controlled, and completed through consultants approved and authorized by the Lender. An Escrow Deposit of $7,500 to $15,000 will be required. Any remaining balance shall be credited, or refunded at the loan closing.
  Lender's Legal: Typically range $4,000 to $15,000 dependent upon the complexity of the borrowing entity and property.
  Other Conditions: See the specific Property Program for other applicable conditions. Each transaction is also subject to additional terms and conditions.

ALL terms are subject to change.

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