Mezzanine Loans – All Property Types
Loan Size $5 to $150 million
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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%