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Loan Programs
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Property
Type: Full or Limited Service Franchised Hotels and Motels properties
that have good location, occupancy, and maintenance.
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Loan
Security: First fee mortgages encumbering completed projects along with
customary assignments and pledges.
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Loan
Amount: $1,000,000 to $35,000,000 per property. Larger loans are case by
case.
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Term:
Ten (10) Years.
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Amortization: Up to Twenty-five (25) years, typically, Twenty (20) years.
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Maximum
LTV: 70%
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Minimum
DSCR: 1.40:1 minimum, preferred 1.50:1 or better.
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Recourse: Non-Recourse, except for standard lender carve-outs, which are
required 100%.
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Commercial
Space: Permitted
providing commercial space does not exceed 20% of square
footage, or 20% of effective gross income. If either occurs,
pricing and structure may change.
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Occupancy
& ADR:
Historical three years, most recent year-end, trailing
twelve months, and current (not more than 30 days old)
Occupancy and ADR Reports on a monthly basis with annual
averages. Economic minimum of 40%, Actual, or Market,
whichever is greater. Minimum 60% average historical
occupancy required.
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Replacement
Reserves: 5%
minimum of Effective Gross Revenue annually, or as scheduled
in the Property Condition Assessment Report. Monthly escrow
is required.
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Subordinate
Financing: None
permitted. FF&E cannot be financed or leased.
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Other
Conditions: See
Standard Lending Provisions. Underwriting requires a minimum
management fee and franchise fee.
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Interest
Rates: See the
most current Pricing Matrix. Rate Buy-Downs are available
*Al
l lending terms and conditions are subject to change.
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