<\/p>\n
Property Age:<\/strong> Loan Limits:<\/strong> Occupancy Requirements:<\/strong> Borrowing Entity:<\/strong> Loan Term:<\/strong> Rates:<\/strong> Guarantees:<\/strong> Assumable:<\/strong> Reserves:<\/strong> Prepayment:<\/strong> Not Permitted:<\/strong> Exceptions:<\/strong> Eligible Property Types: Existing Apartments In Good Condition. Property Age: Post 1975 construction is preferred, although older properties will be considered. Loan Limits: The loan may not exceed 80% of value or the amount that produces a minimum debt service coverage ratio of 1.2. Occupancy Requirements: The property must have had at least 85% […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-3580","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/pages\/3580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/comments?post=3580"}],"version-history":[{"count":0,"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/pages\/3580\/revisions"}],"wp:attachment":[{"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/media?parent=3580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nPost 1975 construction is preferred, although older properties will be considered.<\/p>\n
\nThe loan may not exceed 80% of value or the amount that produces a minimum debt service coverage ratio of 1.2.<\/p>\n
\nThe property must have had at least 85% occupancy for the past 12 months. Unusual tenancies or lease expiration characteristics are considered on a case-by-case basis.<\/p>\n
\nGenerally, a single purpose entity is required.<\/p>\n
\n5, 7, or 10 years balloons. Amortizations are generally 15-25 years but may be as long as 30 years for newer properties in good condition.<\/p>\n
\nInterest rates are set at a fixed spread over comparable term treasuries and vary as a function of coverage ratios. Both fixed and variable rate programs are available. Please call for current spread requirements. Fees:
\nThe borrower is responsible for all closing costs and required reports (appraisals, engineering and environmental reports, surveys, etc.).<\/p>\n
\nNon-recourse except for normal carve-outs.<\/p>\n
\nYes, with consent and a 1% assumption fee.<\/p>\n
\nTax and insurance reserves are required. Also, a replacement reserve account is to be established and funded at a minimum rate (TBD) per unit, per year.<\/p>\n
\nVaries, usually no prepayment for about half of the term, defeasance or yield maintenance thereafter. Open to prepayment without penalty in the final six months.<\/p>\n
\nLeasehold properties, co-ops, and condos. Properties with friable asbestos excluded.<\/p>\n
\nWe can consider on an exception basis subsidized properties, secondary financing, tenant concentration over 25% for military or single employers, properties with large levels of commercial income or corporate leases, and borrowers with troubled credit history.<\/p>\n","protected":false},"excerpt":{"rendered":"