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Loan Type:
Variable-rate, interim loan
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Amount:
$2 to $50 million
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Tier 1 |
Tier 2
Tier 3
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Loan-to-Value:
75%
80%
85%
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Loan-to-Cost:
75%-80%
80%-85%
85%-90%
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Debt Coverage:
(current / stabilized)
1.15x / 1.25x
1.05x / 1.25x
.90x / 1.30x
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Interest Rate:
Competitive floating spread over the 30-day
LIBOR
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Term:
3 years
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Amortization:
Interest only
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Commitment:
Written commitment typically given upon
completion of underwriting and satisfactory review of third party
reports.
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Application Fee:
$5,000, payable at application
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Lender Fees:
Typically 1.0%, payable at closing, and a
1.0% to 2.0% exit fee
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Placement Fee:
1.0%, payable to Progressive at closing
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Deposit:
Typically 0.25% good faith deposit, payable
at application
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Recourse:
Varies
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Prepayment:
Fixed declining
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Secondary
Financing:
Not permitted
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Assumability:
Not permitted
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Borrowing Entity:
SPE is preferred
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Ground Leases:
Considered on a case-by-case basis
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Third Party
Reports:
Appraisal, environmental and structural
reports are required. Each report will be subject to review and
approval by lender. Approximate cost for third party reports, $14,000.
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Legal:
Lender legal will be performed by lender
appointed counsel. Approximate cost for legal, $12,000 to $15,000.
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TI/LC Reserves:
If applicable to property type, tenant
improvement and leasing commission reserves will be calculated and
underwritten based on market conditions and tenant expiration schedule.
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Replacement
Reserves:
Replacement reserves will be calculated and
underwritten based on engineering report findings.
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Tax and
Insurance:
Monthly tax and insurance escrows will be
collected
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Financial
Reporting:
Annual and quarterly financial statements
are required
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Documentation:
Standard documents will be utilized