-
Property
Type: Assisted Care Living Facilities with private pay
70 units, or more that have experienced ownership and
management, good location, occupancy, and maintenance.
-
Loan
Security: First fee mortgage encumbering completed
projects along with customary assignments and pledges.
-
Loan
Amount: $1,500,000 to $15,000,000 per property.
-
Term:
Ten (10) Years.
-
Amortization:
Twenty-five (25) years, or five (5) years less than the
remaining life as determined by the Appraisal and Property
Condition Report.
-
Maximum
LTV: 70%
-
Minimum
DSCR: 1.40:1
-
Recourse:
Non-recourse, except for standard lender carve-outs which
require 100% recourse.
-
Assumption:
Permitted with the payment of an Assumption Fee, typically
1% plus legal expenses, and with Lender's credit approval.
-
Borrowing
Entity: Single Asset/single purpose structure that is
Bankruptcy Remote.
-
Documentation:
Standard note and mortgage affidavits, and ancillary
documents.
-
Rent
Roll: Most recent detailed year end, trailing twelve
months, and current (not more than 30 days old ).
-
Replacement
Reserves: Typically, minimum of $0.10 to $0.25 per
square foot annually, or as scheduled in the Property
Condition Assessment Report. Monthly escrow is required.
-
Tax
& Insurance: Monthly escrow is required.
-
Vacancy:
Economic minimum of 5%, actual, or market, whichever is
greater. Minimum 85% average historical occupancy.
-
Operating
Statements: Three years of historical operating
statements, tax returns, and current year-to-date.
-
Survey:
ALTA standard required and ordered by lender by an approved
surveyor.
-
Title
Insurance: ALTA standard with applicable riders. Lender
orders title through First American Title Insurance Company.
-
Subordinate
Financing: Typically, not permitted. Lender will
consider prior approval with fully subordinated,
non-foreclosable cash flow only.
-
Prepayment
Penalty: Lockout for one-half of the loan term followed
by full yield maintenance to term. No penalty if prepaid
during the final 60 days of the term.
-
Application
Fee: None.
-
Commitment
Fee: Two percent (2%) of the loan amount, or $25,000,
whichever is greater, is due and payable upon the lender's
issuance of the Loan Commitment and the Borrower's
acceptance. Such loan commitment fee shall be held in
Lender's Escrow Account and is refundable less third party
expenses for the property inspection, the MAI appraisal, the
Property Condition Assessment Report, and Environmental Site
Assessment Phase I, underwriting and processing costs, legal
fees, and other costs customary to the loan transaction. The
remaining balance shall be credited or refunded at the loan
closing.
-
Third
Party Reports: Includes Inspection, Environmental Site
Assessment Phase I, Property Condition Assessment, and
Appraisal. All Report s are ordered, controlled, and
completed through consultants pre-approved and authorized by
the Lender. Costs are, typically, in the $7,500 range,
dependent upon the location and complexity of the property.
-
Legal:
Typically range $5,000 to $7,500 dependent upon the
complexity of the borrowing entity and property.
-
Interest
Rates: Request the most current Pricing Matrix. Rate
Buy-Downs are available
