| Type of Loan: |
Acquisition or Refinance / Full Service, Limited Service & Independents (on a case by case basis) |
| Eligible Property/Security: |
First lien mortgages Leaseholds, both subordinated and unsubordinated, are considered on a case-by case basis. |
| Borrower: |
Single asset entity. Borrower with ownership / management experience or has/will hire a professional management company. |
| Loan Amount: |
$2,000,000 minimum. |
| Guarantor/Indemnitor: |
Recourse and Non-recourse available. |
| Term: |
5, 7, 10 years, or 11 years through 25 years. |
| Loan To Value:
| 75% - 80% maximum based on the property's market value as determined by lenders review of an independent MAI appraisal report prepared for and approved by the Lender; 80% Loan to total project cost is also available on a case by case basis. |
| Debt Service Coverage:
| 1.2 - 1.4 some lenders require adjustments for stabilized membership/ franchise fee(s), management fees and an allowance for a replacement reserve. |
| Interest Rate:
| The interest rate is based on the DSCR and LTV and borrower characteristics of each loan. Fixed and Adjustable rates are available. Spreads are 250 - 650 basis points over a variety of indexes. |
| Amortization:
| 15 to 25 years, depending on loan term, property condition and overall underwriting. |
| Repayment:
| Most often a 5,4,3,2,1, program is available. In some cases, no prepayment is acceptable during the first portion of the loan term. Windows can be available. |
| Assumability:
| Often available, at time with conditions and, at the Lender's sole discretion upon payment of a 1% fee. |
| Secondary Financing:
| Allowable at Lender's sole discretion.
|
| Replacement Reserve:
| Non recourse loans often require A minimum Replacement Reserve Escrow for the property shall be required equal to 4.0% - 5.0% of total gross revenue, depending on property type and age. This escrow account will be funded at closing and on an ongoing monthly basis. Borrowers may request withdrawals of funds on a monthly basis to replace FF&E and other capital items. |
| Tax Escrow:
| A monthly deposit to a Tax Escrow shall be required. |
| Property, Hazard and Liability Insurance Escrow:
| Borrower shall provide property, hazard, and liability insurance (including, without limitation, earthquake insurance) acceptable to Lender in all respects. A monthly deposit to the Insurance Escrow shall be required. |
| Good Faith Deposit:
| Borrower shall be required to submit a good faith deposit in connection with the application which includes a non-refundable application fee as well as all third party expenses, including but not limited to appraisal, Phase 1 environmental report, credit reports and searches, travel, other out of pocket and administrative expenses. |
| DISCLAIMER:
| The general terms and conditions outlined above are not all inclusive and are subject to change without notice |
