Mixed Use Property Loans

Nationwide Financing

Eligible Property Types:

Property Type:

Mixed Use Property, both retail and residential.

Loan Limits:
The loan-to-value ratio may not exceed 75%. The minimum debt service coverage ratio must be at least 135%.

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:
Operating 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.

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

Loan Term:
5, 7 and 10 years with amortization based on 15-25 years. Amortization may be extended for additional basis points.

Rates:
Interest 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.

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% fee.

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.

Prepayment:
Prepayment is customarily permitted after 5 years. Special prepayment terms may be available where required.

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