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Purpose:
Financing for conventional market-rate apartment
properties
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Eligible
Properties: Acquisition or refinance of
conventional, market-rate, multifamily properties with
5+ units.
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Ineligible
Properties: Non conventional market-rate
multifamily properties
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Collateral:
1st mortgage
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Loan Amount:
No minimum or maximum
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Loan Term:5
to 30 years
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Interest
Rate/Pricing: Fixed and Variable. Pricing is
market driven.
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Amortization: Up to 30 years
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Origination
Fees: Market driven
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Max LTV:
80%
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Min DSCR:
1.25x
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Recourse:
Non-recourse available for most loans over $1.5million
with standard carveouts for "bad acts."
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Property
Occupancy: New properties must have stabilized
(typically 90% for 90 days) prior to funding.
Pre-stabilized properties considered on a case by case
basis
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Min
Vacancy/Collection Loss: 5%
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Escrows:
Replacement reserves, tax and insurance typically
required for higher leverage transactions.
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Replacement
Reserves: May be required
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Third Party
Reports: Appraisal, Phase I and a Physical Needs
Assessment are required.
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Interest
Accrual Basis: Actual/360 or 30/360
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Rate Lock:
30- to 90-day commitments. Extended Rate Lock available
on limited basis.
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Assumption:
Typically assumable subject to lenders review and
approval of new borrower's financial capability.
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Prepayment
Provisions: Yield Maintenance, Defeasance and
Graduated Prepayment Premium
