| |
|
|
|
|
Loan Type:
Fixed-rate, non-recourse, permanent loan for
multifamily properties
|
|
Amount:
$1 to $50 million
|
|
Loan-to-Value:
Maximum of 80%
|
|
Debt Coverage:
Minimum of 1.25x
|
|
Interest Rate:
Competitive spread over the comparable
Treasury
|
|
Term:
5 to 30 years
|
|
Amortization:
Typically 25 to 30 years, shorter, fully
amortizing loans also available
|
|
Rate Lock:
Rate locked at acceptance of commitment and
payment of a 2.0%, fully-refundable fee
|
|
Commitment:
Written commitment typically given upon
completion of underwriting and satisfactory review of Third Party
Reports
|
|
Application Fee:
No application fee
|
|
Placement Fee:
1.0%, payable to Progressive at closing.
|
|
Deposit:
$10,000 to $15,000 deposit covering cost of
Third Party Reports
|
|
Recourse:
Non-recourse, subject to standard
carve-outs
|
|
Prepayment:
Yield maintenance
|
|
Secondary
Financing:
Fannie Mae DUS 2nd mortgage
permitted after 12 months, limited to 80% of appraised value
|
|
Assumability:
Fully assumable with payment of a 1.0%
assumption fee, subject to lender approval
|
|
Borrowing Entity:
Single asset entity is preferred
|
Ground Leases:
Considered on a case-by-case basis
|
|
Third Party
Reports:
Appraisal, environmental and structural
reports are required. Each report will be subject to lender review and
approval. Approximate cost for Third Party Reports, $10,000 to $15,000.
|
|
Legal:
Lender legal may be performed by local
counsel. Approximate cost for Legal, $5,000 to $7,000.
|
|
Replacement
Reserves:
Replacement Reserves will be calculated and
underwritten based on engineering report findings. Replacement Reserve
collection may be waived for low leverage transactions.
|
|
Tax and
Insurance:
Monthly tax and insurance escrows will be
collected. Interest on such escrows payable to borrower.
|
|
Financial
Reporting:
Annual borrower prepared operating statement
and rent roll
|
|
Documentation:
Standard documents will be utilized