These are guidelines only; terms and structure are customized on a deal-by-deal basis.

Loan Program

Loan Size $25,000,000 to $300,000,000
Collateral First mortgage on Fee or Leasehold Interest. Properties must be constructed and cash flowing
Origination Fees Generally 1%
Exit Fee Negotiable
Term Generally 3-5 years (longer terms available)
Amortization Generally interest only with 25-30 year amortization in certain circumstances
Interest Rate Floating or Fixed Rate
Minimum Debt Service Coverage 1.10x (may be lower with adequate interest reserves)
Minimum Debt Yield (UNCF) 10.0% to 13.0% on stabilized UNCF (8%-9% on As Is UNCF (lower debt yields considered depending on merits of the deal)
Recourse Generally non-recourse
Prepayment Call protection for term (excluding loan extension period) with prepayment penalty negotiated on a deal-by-deal basis to greater of 1% or spread maintenance
Assumability Loans are generally not assumable
Loan to Value Up to 75% LTV (80% with mezzanine debt originated by Starwood)
Escrows Generally monthly escrows required for real estate taxes and insurance
Tenant Improvement and Leasing Commission Reserves Determined on a property-by-property basis to accomplish stabilization plan or sustain occupancy.  Ability to future fund TI & LC's.
Capital Expenditure Reserves Generally the greater of $0.20 per square foot for office/$0.10 psf for industrial or $250 per unit or 4% of total income or engineer's recommendation or requirement under management/franchise agent
Interest Rate Caps Generally required for the initial term of the loan
Interest Rate 5-6%

Mezzanine Loans - all property types

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). 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 Either
Term Generally 5 to 10 years (co-terminus with first mortgage)
Amortization Structure determined on a deal-by-deal basis
Minimum Debt Service Coverage Generally 1.10 (considered lower with adequate reserves for value add properties)
Loan to Value Up to 85% LTV
Recourse Typically non-recourse
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
Interest Rate 9-12%