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Permanent Loan

CAPITAL STRUCTURE: PERMANENT LOAN Investment management firm offering non-recourse debt financing for a wide variety of asset types Check Size: $5-40MM LTV: Up to 70% Rate: US Treasury plus 250-300 bps Term: 3-25 years Recourse: Non-recourse with standard carve-outs Amortization: Up to 30 years Property Types: Office, industrial, retail, multifamily, student housing, self-storage Geography: Primary & secondary markets in the U.S. and Canada DSCR sizing: 1.20-1.30 (multifamily), 1.20 (industrial), 1.40-1.45 (office, retail, medical) Rate Lock: 90 days
CAPITAL STRUCTURE: PERMANENT LOAN/ BRIDGE LOAN/ MEZZANINE LOAN and PREFERRED EQUITY Hotel specialist providing various debt and equity products for select and limited service premium branded assets. Check size: $5-$100MM for bridge and permanent loans, $1-$10MM for mezzanine and preferred equity LTV: Up to 85% on bridge and mezzanine, up to 95% on preferred equity Rate: Starting at 4.5% for senior debt and starting at 12%/13% with potential equity kickers for structured capital Term: Bridge 2-5 years, mezzanine matched to senior and preferred equity up to 5 years Property type: Hospitality-only uses, Acquisitions, Recapitalization, Construction Takeout, PIP/Renovation Financing, and Gap Financing Geography: Nationwide
CAPITAL STRUCTURE: BRIDGE LOAN/ PERMANENT LOAN Large international LifeCo providing low cost and flexible alternative to banks and domestic insurance company options. Property Type: Office, Mixed-Use, Self Storage, Flex, Industrial, Hotel, and Multifamily. Check size: $10 – $40MM Leverage: Up to 70% LTV on post COVID pricing. Lower for Retail and Hospitality. Rates: starting at 3.5% over LIBOR on floating and low 4s all in rate on fixed basis Fees: 1% in Term: Up to 7 years + extension Amortization: IO options available Future Funding: Holdbacks for renovations and “good news” Uses: Acquisitions, Recapitalization and Repositioning Geography: Top 25 U.S markets
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: PERMANENT LOAN An aggressive CMBS lender has rolled out a new program offering a 40-year amortization period for 90s+ vintage multifamily, industrial, and select office properties. Check size: $5-$60MM LTV: Up to 75% as-is value Rate: Market spreads (180-200bps for full leverage) over SWAPS Term: 10 years Amortization: 40 years Interest Only: Available for 1-3 years, or more on lower leverage Property type: Multifamily, Industrial and select Office Uses: Acquisitions, recapitalization Geography: Nationwide No Closing Costs: On loans over $30MM where leverage is 60% or less
CAPITAL STRUCTURE: PERMANENT LOAN An aggressive Bank lending in the top 200 MSAs offering flexible long-term balance sheet financing for Multifamily, Industrial, Retail, Office, Medical Office, Self-Storage & Student Housing Check Size: $3MM – $50MM LTV: Up to 80% for Multifamily and 75% for all others Rate: Spreads ranging from 1.25% to 2% dependent on asset class, leverage and term Recourse: Non-recourse, partial, and full options available Term: 5 to 15 years Amortization: 15 to 30 years Interest Only: Available for 3 to 10 years based on leverage variation below 65% Forward Rate Locks: Up to 12 months as early as commitment Prepayment Flexibility: Step downs with option to buy down Reserves: No Tenant Improvement reserves, only for Taxes & Insurance Geography: Must have population greater than 75,000 within a 5 mile radius of the asset Closing Costs: $9,500 to $25,000 depending on size
CAPITAL STRUCTURE: PERMANENT LOAN CMBS lender rolls out a new program offering streamlined documentation and fixed low closing costs for fixed-rate loans. Check size: $1.5-$5MM LTV: Up to 75% as-is value Rate: Market spreads (180-220bps for full leverage) over SWAPS Term: 10 years Amortization: 30 years Non-Recourse: Limited to standard carve outs Property type: Industrial, Retail, Office, Hotel, Multifamily, Self-Storage, Net lease, & MHP Uses: Acquisitions, recapitalization Geography: Nationwide Fixed Closing Costs: $25,000 for lender legal and all third parties Loan Documentation: Abbreviated securitization agreements
CAPITAL STRUCTURE: PERMANENT LOAN Asset management firm providing balance sheet execution for core+ permanent loans Property Type: Student/Multifamily Housing, Self-Storage, Retail, Office, MHP’s and Hospitality Check size: $10 – $75MM Leverage: Up to 85% LTC / 75% LTV Rates: Spreads to Treasuries of 150 bps+ Term: Up to 15 years Amortization: Interest only Future Funding: Earn Outs for performance-based goals Uses: Acquisitions & Refinance Geography: Nationwide
ALL SPOTLIGHTS

CAPITAL STRUCTURE

Seth Shumer

MANAGING DIRECTOR

Email

sschumer@Eyzenberg.com

D: (305) 995-0777 ext .306
C: (305) 360-9625 

Aryeh Friedman

MANAGING DIRECTOR

Email

afriedman@eyzenberg.com

D:(212) 519-1140 ext. 101
C: (203) 858-3960