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CONSTRUCTION LOAN

CAPITAL STRUCTURE: BRIDGE LOAN/ CONSTRUCTION LOAN, MEZZANINE DEBT  Newly formed finance arm of private equity vehicle seeking to deploy capital for senior housing, medical offices, student/multifamily housing, self-storage.  Check size: $10 – $500MM LTV: Up to 85% LTV/LTC Rates: Spreads to LIBOR of 2.5% – 5.5% (first mortgage) or 6.0% – 10.0% (mezzanine/preferred equity) Term: Up to 7 years Amortization: Typically interest only Property type: Senior Housing, Medical Office, Student/Multifamily Housing, Self-Storage Uses: Development, Acquisitions, Recapitalization Geography: NationwideHigh leverage flexible long-term balance sheet financing
CAPITAL STRUCTURE: BRIDGE LOAN/ CONSTRUCTION LOAN An aggressive East Coast Bank has dropped pricing for construction and bridge loans across various asset classes. Check size: $20-$150MM LTV: Up to 70% for Multifamily and 65% for all others Rate: Spreads ranging from high 1s to low 2s on transitional assets and high 2s to mid 2s for construction transactions Recourse: non-recourse for bridge loans and 20-25% recourse for construction loans with burn offs Term: 3 to 7 years Amortization: 30 years for multifamily and 25 years for all other asset classes Interest Only: Up to four years DSCR sizing: 1.15x Structured Capital Friendly: Allow mezzanine debt up to 80% and preferred equity up to 90% Asset Types: Multi-family, condo, office, retail, hotel, mixed use, industrial, self-storage, parking, some land Geography: East of the Mississippi, Boston to Key Largo
CAPITAL STRUCTURE: LAND LOAN/BRIDGE LOAN/CONSTRUCTION LOAN Balance sheet lender offering quick close, full discretion and non-recourse debt financing Check Size: $8MM-40MM LTV: Up to 75% stabilized value LTC: No loan to cost restriction Pricing: Minimum 5% Coupon Fees: 1% to 2% origination fee Term: 1 to 3 years with extension options Recourse: Non-recourse Property Types: Multifamily, retail, office, mixed-use, industrial, healthcare/life science, self-storage, for-sale condos, SFR communities, land and horizontal development. Use: Acquisition, recapitalization, and construction Geography: CA, OR, WA, AZ, NV, UT, CO, TX
CAPITAL STRUCTURE: BRIDGE LOAN/ CONSTRUCTION LOAN Private debt fund offering high leverage senior debt nationwide Check Size: $5-200MM LTC/LTV: Up to 75% Amortization: Interest only Rate: High single digits Fees: 1.00% Term: Up to 60 months Prepayment Penalty: None Recourse: Recourse and non-recourse available Property Types: Multifamily, Industrial, Office, Retail, Residential and Mixed-Use Geography: Nationwide
CAPITAL STRUCTURE: CONSTRUCTION LOAN / PERMANENT LOAN An insurance company is funding large senior construction loans at a fixed rate (locked at application) that convert into the fixed-rate permanent loan. Check size: $50MM+ LTV: Max 70%; typically 65% or less Rate: Market spreads over treasuries Term: 36 months of construction term followed by 7+ year permanent loan for total of 10-25 years Property type: Multifamily, (high & mid-rise, wrap and podium construction, no suburban garden-style product) Uses: Development Geography: Top 10 metro areas in the U.S. (urban, in-fill loc
CAPITAL STRUCTURE: CONSTRUCTION LOAN / PERMANENT LOAN / PARTICIPATING LOAN An international fund manager is deploying rare participating debt investments out of its multi-billion open-ended fund. Check size: $20-$200MM LTV: 90% Rate: Current pay rate of 5-6% with 50% operating cash flow participation post debt service Waterfall: Upon a capital event: Repayment of mortgage Preferred return of 7-9% to lender Return of borrower’s equity Preferred return of 7-9% to borrower 50/50 share thereafter Term: Closed to pay off after 5-7 years Property type: Multifamily, Industrial, Office, Retail, Student Housing, Hospitality, Self Storage Uses: Acquisitions
CAPITAL STRUCTURE: CONSTRUCTION LOAN/ PERMANENT LOAN/BRIDGE LOAN Community bank offering flexible debt financing for all asset types. Check Size: $5-100MM+ LTC: Up to 80% LTV Up to 80% Amortization: Interest only (Up to 30 years) Target: Minimum DSC 1.20x Recourse: Flexible. Non-recourse available on select property types based on loan metrics Property Types: All property types with a focus on multifamily, industrial, retail, office, and medical office Use: Construction, acquisition and reposition Geography: CA, OR, WA, AZ, NV, ID
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