Retail Shopping Center Loans

Nationwide Financing

Eligible Property Types:

Property Type:

Retail and community shopping centers. Anchored, unanchored, outlet centers and single tenant buildings will be considered.

Property Age:
Facilities should have been completed and in operation for at least 12 months. Properties built or substantially renovated since 1975 are preferred.

Loan Limits:
The loan-to-value ratio may not exceed 80%. The minimum debt service coverage ratio is 1.20%.

Occupancy Requirements:
The center should be substantially leased to a stabilized level.

Borrowing Entity:
Generally, a single purpose entity is required

Loan Term:
5, 7, or 10 year terms are available at the borrower's option. Amortization is on a 15-30 year term.

Rates:
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.

Fees:
The borrower is responsible for all closing costs and required reports (appraisals, engineering and environmental reports, surveys, etc.).

Guarantees:
The loans are generally non-recourse except for standard carve-outs.

Assumable:
Yes, with consent and a 1% assumption fee.

Reserves:
Tax and insurance reserves are required. Also, a capital replacement and releasing cost reserve will be established.

Prepayment:
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.