Senior Lending guidelines.
Interest rates & term.
- Fixed and floating rates at competitive, market-based spreads over Treasuries or LIBOR
- Rate locked upon receipt of an executed application with appropriate deposits
- Floating Rate: up to 5 years
- Fixed Rate: 3 - 30 years
- Typically $10 million to $300 million for single assets, higher for portfolio transactions
- Will coordinate and structure co-investment arrangements for loans with higher proceeds
Co-Lending on Senior Debt.
- Arrange club loans
- Participate with a lead lender
- Financing available of $500 million+, higher with participants
- Average allocated loan amount in pool per asset should exceed $10 million. Loan facility can be increased or reduced via property additions or releases
- Fixed rate loans with a floating rate component allow for partial releases and prepayment flexibility
- Loans may be partially collateralized via mezzanine positions
- Loan to Value: Up to 75% for mortgages, higher for credit transactions
- Debt Coverage Ratio: Minimum of 1.30X or greater once stabilized
- High grade mezzanine debt may have less restrictive underwriting parameters
- Non-recourse to borrower except for standard carve outs
Typical timing & deposits.
- Transactions approved for commitment and rate lock in a quick and efficient manner
- Typical commitment to closing: 30 to 60 days
- Forward financing options available
- Typically 2% to 3% refundable deposit required to lock rate
- Non-refundable processing payment required for third party consultant reports
- Property Condition
- Seismic, as applicable
*These guidelines are representative and not an offer.