Commercial Real Estate Financing For Business Owners!


Muti-Family Apartment Loans - Nationwide Financing

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The Loan Program:

Medical Building Financing

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 1.20.

Occupancy Requirements:
The 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.

Borrowing Entity:
Generally, a single purpose entity is required.

Loan Term:
5, 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.

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

Guarantees:
Non-recourse except for normal carve-outs.

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

Reserves:
Tax 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.

Prepayment:
Varies, usually no prepayment for about half of the term, defeasance or yield maintenance thereafter. Open to prepayment without penalty in the final six months.

Not Permitted:
Leasehold properties, co-ops, and condos. Properties with friable asbestos excluded.

Exceptions:
We 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.