Non-Recourse CMBS Lending Program

Minimum $2,000,000

Non-Recourse long term first mortgage loans on select commercial real estate properties with the following rates and terms:
Eligible TransactionsAcquisition or refinance of existing quality stabilized income-producing properties, nationwide Top 50 MSAs only
Eligible PropertiesMultifamily, mixed use, office, retail, warehouse, industrial, credit single tenant, self-storage. Flagged hotel, resort, full/limited service, suites, limited stay case by case. (High-end unflagged also possible). Limited to Class A, B or C only
Properties NOT Eligible :No Class C- or D  No special purpose, B&B, gas stations, C-stores, MHP, land, subdivisions, etc. No TIC. Ground lease ok = remaining term plus 10 years. No environmental issues. No mortgage defaults.
Transaction Size:$2 million – $200 million per property – no wraps.
LTV65% to 75% of FIRREA appraised value, depending on property type. [Always the lesser of as-is appraised value or purchase price] 80% for Class A multifamily
SecurityFirst mortgage lien on the subject property, assignment of leases and rents, UCC on other property collateral, [NO personal guarantees- “bad boy” acts only].
OwnershipSingle asset, special purpose entity only  (Corp, GP, LP, LLC, etc.)
Principals RequirementsCreditworthy, experienced individuals with sufficient liquidity & net worth. Post funding liquidity at least 10% of loan; net worth 1x loan
Application FeeFee of $2,500 is due with the signed Letter of Intent
Commitment Deposit$25,000 or more, payable upon acceptance of Loan Commitment depending on 3rd party costs, legal and closing. Unspent balance applied towards Origination Fee or refunded at closing.
Origination FeePar pricing is available
CMBS Underwriting feeGreater of $10,000 or 1% of loan request; amount depends on loan size and property type. Due after LOI accepted and initial underwriting.
Interest Rate3.55% to 5.25% depending on loan term, DSC, LTV.
Loan SpreadBased on US Treasuries or US Swaps equal to loan term
Amortization25 years for commercial,  to 30 years for multifamily (may be shorter depending on property type and use)
DSCR1.25x  with in-place rents (not projections)
Loan Term5, 7 or 10 year term – balloon at end of loan term.
Non-RecourseNo personal recourse to principals for loan. Traditional “Bad Boy” carve-outs are required for waste, hazardous substances, etc.
Minimum OccupancyStabilized market occupancy
Prepayment PenaltiesDefeasance with 2-year lockout and 90 day open period prior to scheduled maturity date.
Rate LockTwo days before closing for a 2% refundable fee
Subordinate LoanNot permitted
AssumabilityAssumable to qualified borrowers for a fee
Closing TimeUsually 45 days from accepted LOI