Posted by Andres Garcia on August 10, 2009 at 14:46:22:
I facilitate financing for Real Estate Investors and developers on a nationwide basis. I would like to know how competitive the terms below are compared to what is generally available in the market. I was very happy because of the perceived risks associated with each of these files. I have forged a strong relationship with the lenders who offered me these quotes.
Also On these questions:
Would the issuance of a Conditional Commitment give you more confidence than a Letter of Interest?
(Florida)
Loan Amount: $25,600,000
LTV: 75%
Spread: 450 bps
Index: 3 Month LIBOR
Floor Rate: 5.00%
Term: 5 years
Amortization: 25 years
Min DSCR: 1.20x
Prepayment: 1 year Lockout then Yield Maintenance (no penalty in last 3 months of term)
Points: 2% (paid at closing)
Commitment Fee: 0.25% (paid upon acceptance of funding commitment (credited to points at Closing)
Retail (Florida)
Loan Amount $30,800,000
LTC/LTV: 70%
Spread: 337 bps
Index: 10 Year treasury (Floats at 4.50 above 3month LIBOR in year 8)
Term: 8 years
Amortization: 25 years
DSCR: 1.30x
Prepayment: 7%,6%,5%,4%,3%,2%,1% (no penalty in year 8)
Points: 2% (paid at closing)
Commitment Fee: 0.25% (paid upon acceptance of funding commitment (credited to points at Closing)
Retail (61% Occupied)
Mezzanine piece with basic terms as follows
Rate: 14%
Term: 24 months
CLTV: 85%
Amortization: Interest Only
DSCR: 0.80x
Office (63% Occupied) Maryland
Loan Amount $75,000,000
LTC/LTV: 60%
Spread: 350 bps
Index: 10 Year treasury
Term: 10 years
Amortization: 3 years Interest only then 25 years
Prepayment: 3 year lockout then Defeasance (waived in last 3 months of Term)
Origination Fee: 1.5% (paid at closing)
Commitment Fee: 0.25% (paid upon acceptance of funding commitment (credited to points at Closing)
Retail (71% Occupied) California
Loan Amount: $10,000,000
LTC/LTV: 75%
Spread: 375 bps
Index: 10 Year treasury (Currently at 3.86%)
Term: 10 years
Amortization: 3 years Interest only then 25 years
Prepayment: 3 year lockout then Yield Maintenance (waived in last 3 months of Term)
Origination Fee: 2% (paid at closing)
Commitment Fee: 0.25% (paid upon acceptance of funding commitment (credited to Origination Fee at Closing