
Non-conduit eligible loans.
These are guidelines only; terms and structure are customized on a deal-by-deal basis.
Permanent - Long Term Fixed Rate Program
| Loan Size | $15,000,000 to $300,000,000 |
| Collateral | First mortgage on Fee or Leasehold Interest. Properties must be constructed and cash flowing |
| Term | Generally 3-10 years |
| Amortization | Generally 30 year maximum with some interest only available in specific cases |
| Interest Rate | Fixed Rate or Floating |
| Minimum Debt Service Coverage | 1.0:1 |
| Minimum Debt Yield (UNCF) | 10% to 12% on Stabilized UNCF depending on the market |
| Recourse | None, except for standard carve-outs |
| Prepayment | Yield Maintenance or Defeasance |
| Assumability | Loan is assumable with a fee (generally 1%) |
| Subordinate Financing | Up to 85% loan-to-value |
| Escrows | Generally monthly escrows required for real estate taxes and insurance |
| Tenant Improvement and Leasing Commission Reserves | Determined on a property-by-property basis |
| Capital Expenditure Reserves | Generally the greater of the engineering report recommendation and (i) $0.20 per square foot for office; $0.10 per square foot for industrial; $0.15 per square foot for retail; $250 per unit for multifamily; > $300 per unit or $150 per bed for student housing ; $50-$75 per unit for MHC |
Bridge Loan Program
| Loan Size | $20,000,000 to $300,000,000 |
| Collateral | First mortgage on Fee or Leasehold Interest. Properties must be constructed and cash flowing. |
| Origination Fees | Generally, a fee of 1% |
| Exit Fee | Generally 1% |
| Interest Rate | Fixed Rate or Floating |
| Term | Generally 3 to 5 years (longer terms available) |
| Amortization | Generally interest only with 25 - 30 year amortization in certain circumstances |
| Minimum Debt Service Coverage | 1.10x (may be lower with adequate interest reserves) |
| Min Debt Yield (UNCF) | 10% to 12.5% on Stabilized UNCF (lower debt yields considered for prime markets or trophy assets); 6%-8% on As Is UNCF (determined deal by deal depending on merits of the property, market, and lease up risk) |
| Loan to Value | 80% max LTV (up to 85% with mezzanine originated by Starwood) |
| Recourse | Determined on a deal by deal basis |
| Prepayment | Call protection for term (not including extension period), which is negotiated on a deal by deal basis to generally the greater of spread maintenance & 1.0% |
| Assumability | Loans are generally not assumable |
| Escrows | Generally monthly escrows required for real estate taxes and insurance (can be waived on a case by case basis) |
| Tenant Improvement and Leasing Commission Reserves | Determined on a property-by-property basis to accomplish stabilization plan or sustain occupancy |
| Capital Expenditure Reserves | Generally the greater of $0.20 per square foot for office/$0.10 psf for industrial or engineer's recommendation |
| Interest Rate Caps | Generally required for the initial term of the loan |
Mezzanine Loans
| Loan Size | $5 to $150 million |
| Collateral | Up to 100% of the equity ownership interests in the related property Borrower (s). (mezzanine debt is made to an entity that is the parent of a Borrower (s) of 1st mortgage debt secured by property(s); such parent pledges its entire ownership interest in the Borrower (s) to secure its debt |
| Fixed or Floating | Determined on a case-by-case basis |
| Term | Generally 3 to 10 years (co-terminus with first mortgage) |
| Amortization | Structure determined on a deal-by-deal basis |
| Minimum Debt Service Coverage | Generally 1.10x-1.15x (considered lower with adequate reserves for value add properties) |
| Loan to Value | 85% max LTV |
| Recourse | Determined on a case-by-case basis |
| Prepayment | Co-Terminus with first mortgage; call protection for term |
| Origination Fees | 1% to 2% |
| Exit Fees | 1% to 2% |
| Extension Fees (Bridge Loans) | 1/2% to 1% per extension |
| Cash Management | Hard Lockbox |
| Assumability | Assumable deal by deal (permanent loans); Not assumable on Bridge Loans |
| Escrows/Reserves | Will be consistent with First Mortgage |