CAPITAL STRUCTURE: PERMANENT LOAN

Fund manager writing long term loans
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
Non-Recourse fixed rate small balance loans
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
High leverage flexible long-term balance sheet financing
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 
Unique to CMBS, a longer amortization program for senior loans
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
Non-recourse, participating construction or permanent loan structure
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 and/or development
Geography: Nationwide
Permanent, bridge and mezzanine loans and preferred equity targeting hotels
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
Construction-to-Permanent Loan Program
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 locations)