LOAN TERMS

 

LOAN AMOUNT

From $500,000 to $10 million; preferred loan size between $2 million and $7 million

LOAN TO VALUE

Up to 70%; typical LTV is 60-65%

LOAN TERM

1-5 Years; preferred term is 2-3 years

FUTURE FUNDING

For lease-up costs and earn-outs

COLLATERAL

First Deed of Trust or mortgage on commercial property

SECONDARY COLLATERAL

Other collateral or liquid assets may be pledged as credit enhancement for the loan

RECOURSE

Typically non-recourse with standard carve-outs

LOAN TYPES

Variable or fixed

INTEREST RATES

Variable: LIBOR + Credit Spread
Fixed: Swap Yield + Credit Spread

CREDIT SPREADS

Based on property and loan characteristics, typically from 7% to 10%

ORIGINATION FEE

Typically starts at a couple of points depending on transaction,, and can be wrapped into the loan so that it is not out of pocket

PREPAYMENT FEE

Typically waived after a short lock-out period

LENDING AREA

Nationwide