Loan Limits:<\/strong> Occupancy Requirements:<\/strong> Underwriting Assumptions:<\/strong> Borrowing Entity:<\/strong> Loan Term:<\/strong> Rates:<\/strong> Fees:<\/strong> Guarantees:<\/strong> Assumable:<\/strong> Reserves: Tax and insurance reserves are required. Also, a capital reserve escrow will be established and funded monthly based on a rate of not less than 1\/12 of 5% of gross annual revenues.<\/p>\n Prepayment:<\/strong> Eligible Property Types: Mixed Use Properties. Loan Limits: The loan-to-value ratio may not exceed 80%. The minimum debt service coverage ratio must be at least 1.25. Occupancy Requirements: For underwriting purposes the maximum occupancy will be the lesser of prior year actual or 75%. Properties with less than 60% occupancy are generally ineligible. Underwriting Assumptions: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-3587","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/pages\/3587","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=3587"}],"version-history":[{"count":0,"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/pages\/3587\/revisions"}],"wp:attachment":[{"href":"https:\/\/commercial-financing-real-estate.com\/blog\/wp-json\/wp\/v2\/media?parent=3587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe loan-to-value ratio may not exceed 80%. The minimum debt service coverage ratio must be at least 1.25.<\/p>\n
\nFor underwriting purposes the maximum occupancy will be the lesser of prior year actual or 75%. Properties with less than 60% occupancy are generally ineligible.<\/p>\n
\nOperating cash flow (with primary reliance on trailing 12 months results) will generally be adjusted for underwriting purposes to provide: Management fees of the greater of 5% of revenues or actual fees, and Franchise fees of the greater of 5% of revenues or actual fees, and Capital replacement reserves of at least 5% of revenues.<\/p>\n
\nGenerally, a single purpose entity is required.<\/p>\n
\n5, 7 and 10 years with amortization based on 15-25 years. Amortization may be extended for additional basis points.<\/p>\n
\nInterest rates are fixed at a determined spread over comparable term treasuries, and vary based on coverage ratios. A variable interest rate floating at a spread over the 1 month LIBOR is available.<\/p>\n
\nThe borrower is responsible for all closing costs and required reports (appraisals, engineering and environmental reports, surveys, etc.).<\/p>\n
\nThe loans are generally non-recourse except for standard carve-outs.<\/p>\n
\nYes, with consent and a 1% fee.<\/p>\n
\nPrepayment is customarily permitted after 5 years. Special prepayment terms may be available where required.<\/p>\n","protected":false},"excerpt":{"rendered":"