Short Term Bridge Mortgage Lending Program
Minimum $1,000,000
Short-term first mortgage loans
on select commercial real estate properties with
the following rates and terms:
| Eligible
locations: |
Continental US |
| Eligible
properties: |
Income producing commercial real estate properties including apartments, office, retail, self storage, hotels, mobile home park, light industrial and warehouse. Busted condo deals. Completion of construction on a partially built project if the project is substantially finished. |
| Eligible
transactions: |
Acquisition or refinance, debt buy downs, D-I-P, BK. loan portfolio purchase financing, completion of construction (Will consider high vacancy depending on circumstances) . A good FICO score helps but we will look at sponsors with lower scores. |
| Transaction
size: |
$1 million -
$50 million |
| LTV-LTC: |
Up to 65% of lesser of “As Is” appraised value or actual purchase price/project cost |
| Security: |
First mortgage
lien on the subject property(s), assignment of all permits and
approvals, assignment of leases, pledge of partnership interests,
personal guarantee of principals, UCC on other collateral |
| Ownership: |
Single asset,
special purpose entity. |
| Application
Fee: |
Fee of $3,000 is due with the signed Letter of Intent |
| Origination
Fee: |
3% - 5% of loan amount payable at closing, depending on transaction |
| Exit
Fee: |
Negotiable |
| Commitment Deposit |
1% deposit payable upon acceptance of Term Sheet to be used for 3rd party costs, legal and closing. Balance applied towards Origination Fee or refunded at closing. |
| Prepayment: |
Permitted at any time but 6 months interest requirement |
| Interest
Rate: |
Floor rate 10% up to 15% |
| DSC: |
Depends on transaction or interest reserve required. |
| Non-Recourse: |
Non-recourse is possible for quality deals; -otherwise recourse depending on transaction. |
| Loan
Term: |
12-36 months, negotiable |
| Partial Releases |
Releases for sold units at to-be-negotiated release prices. |
|
| Reserves |
Real estate
taxes, hazard insurance, and mortgage interest if required |
| Second
Mortgage: |
Possible with
permission of Lender |
| Exit
Strategy: |
Heavy concentration
on value creation, market analysis and exit strategy. |
| Third
Party Reports: |
MAI Appraisal,
Phase I environmental, feasibility and others if required, ordered
by Lender at expense of Borrower. |
| Closing
Time: |
As short as 1 week based on complete file. 2-3 weeks for routine transactions |
At
no charge, a detailed loan offer will be forwarded upon completion
of initial analysis.
BROKERS ARE PROTECTED UP TO 2% BASED ON FEE AGREEMENT WITH BORROWER
© Sterling
Commercial Capital, January 2011. Subject to Change Without Notice |
