Large Balance Mezzanine Loans

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         Generally 1.10 (considered lower with adequate reserves for value add properties)                         Service Coverage

Loan to Value            Up to 85% LTV

Recourse                     Typically non-recourse

Prepayment               Co-Terminus with first mortgage; call protection for term

Origination Fees       1.5% to 2.5%

Exit Fees                       1% to 2%

Extension Fees           1/2% to 1% per extension                                                                                                                        (Bridge Loans)

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%