CMBS
As a Lender Correspondent we are actively involved in managing the whole process to closing: from engaging the appropriate 3rd parties (appraisal, engineering and environmental reports), underwriting the loan, presenting to credit committee to interacting with our pre-approved outside legal counsel. In addition, if needed, we will handle the entire defeasance process for our clients. This way the deal is done smoothly and closed per the application.
| Fixed Rate | Floating Rate | |
|---|---|---|
| Type | Conduit Lenders | Balance Sheet |
| Loan Amount | $2,500,000+ | $10,000,000-$50,000,000 |
| Loan Term | 5, 7 and 10 year | Generally 2 years with options to Extend. |
| Asset Types | Office, retail, industrial, multifamily, hotel, self storage and mobile home parks. Other asset classes to be considered on a deal-by-deal basis | Office, retail, industrial, multifamily, hotel and mobile home parks. Other asset classes to be considered on a deal-by-deal basis |
| Recourse | Non - Recourse to Key Principals except for customary bad boy carve outs | Non - Recourse to Key Principals except for customary bad boy carve outs |
| Loan to Value | Up to 80% (on acqusitions) and 75% on refinance. Higher Leverage mezzanine transactions can be looked at on a deal by deal basis | Up to 85% LTC |
| DSCR Requirement | 1.25x on NCF (1.20x NCF for multifamily) | Deal-by-deal basis |
| Amortization | Typically 30 yr (Partial Interest Only Available) | Typically Interest Only/ 1st two years then high leverage structured Amortization |
| Interest Rate | Competitive SWAP based pricing | Competitive LIBOR based pricing |
| Broker Fees | NONE | Lender Origination Fee |
| Exit Fee | NONE | Generally 1% of the Loan Amount. May be waived if the Loan is refinanced by lender |
| TI/LC, CapEx, Other Reserves | Ongoing TI/LC and CapEx reserves collected unless low leverage and strong sponsor | Ongoing TI/LC and CapEx reserves collected |
| Prepayment | Defeasance or yield maintenance | Spread Maintenance after Lock out period (Open after 12-15 Months) |