NON-INVESTMENT GRADE TENANT COMMERCIAL LOAN PROGRAM

Eligible Properties State and Municipal Leases, Companies with sales over $5,000,000, B2 and less rated companies (i.e.Dollar Store, etc.).
Borrower Single asset, single purpose entity.
Loan Benefits Most competitive interest rates, high leverage financing, expert commercial financing staff. Non Recourse loans.
Loan Amount Minimum $700,000.
Loan Term Typically 5 years past the lease term.
Interest Rate Tied to spreads over the ten-year Treasury.
Amortization Up to 30 years.
Recourses Non-recourse.
Assumability Multiple transfer permitted; 1% fee.
Prepayment Yield Maintenance.
Loan to Value Maximum 85% loan to value.
Debt Coverage Ratio 1.10- 1.15x’s.
Reports Require appraisal, structural engineering and environmental reports.
Pricing Based on credit quality of tenant, strength of the lease and location of the property.
Reserves Typically carve out 5% management fee and 3% for property reserves. Escrow 1.25x of deferred maintenance. Insurance/Tax reserves required.
Forward Commitment Can secure a 6-month forward commitment for a one time 7% fee.
Underwriting For projects where the lease and loan term are not the same, will not loan more than 90% of the original construction cost. In arriving at the cost, the builder’s profit is deducted from the formula.
Loan Request Package

Include the following in your request for a loan quote:

1. Property description and location map .
2. Pictures.
3. Copy of Lease .
4. Operating history - prior 3 years, if available.

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