Eligible Property Types:
Retail Strip Shopping Centers – Anchored – Unanchored and Single Tenant Buildings Considered.
Facilities should have been completed and in operation for at least 12 months. Properties built or substantially renovated since 1975 are preferred.
The loan-to-value ratio may not exceed 80%. The minimum debt service coverage ratio is 1.2.
The center should be substantially leased to a stabilized level.
Generally, a single purpose entity is required
5, 7, or 10 year terms are available at the borrower’s option. Amortization is on a 15-30 year term.
The interest rate is set at a fixed spread over comparable term treasuries, and varies based on coverage ratios. Floating rates are also available. Please call for current rate and spread quotes.
The borrower is responsible for all closing costs and required reports (appraisals, engineering and environmental reports, surveys, etc.).
The loans are generally non-recourse except for standard carve-outs.
Yes, with consent and a 1% assumption fee.
Tax and insurance reserves are required. Also, a capital replacement and releasing cost reserve will be established.
Prepayment will be prohibited for a portion of the term and then will be subject to defeasance or yield maintenance until the final six months, during which prepayment is allowed without penalty.
Use of Proceeds:
Loans are available for both purchase and refinance transactions.