Lending Sources

• Life Insurance Companies
• Banks
• Conduits
• High Leverage Private Placements

Loan Amount

$750,000 and up (typically $1 million to $25 million)

Loan Term

3, 5, 7, and 10 through 25 years (short-term, floating-rate transactions also available)

Amortization

Amortization up to 30 years is available, depending on LTV and property type. Fully amortizing transactions are also available, i.e. 20-year term/20-year amortization. Also, in some special cases, interest-only is available.

Property Types

(Most types of income-producing properties)

• Multifamily
  • Market Rate
  • Affordable
• Mixed-Use
• Credit Retail
• Unanchored Retail
• Office
• Industrial
• Mini-Storage
• Mobile Home Parks
• Hotels
• Nursing Homes
• Senior Housing
• Parking Garages

Recourse

Typically, transactions are non-recourse, with the exception of indemnity for environmental matters and fraud, etc. unless owner-occupied or, in some cases, single (non-credit) tenant buildings-part or up to 100% recourse may apply.

Assumability

Loans are generally assumable with lender’s approval and a 1% fee or a lesser amount if completed in a specified time frame.

Loan-To-Value

Typically LTV is 75% with up to 80% LTV for some property types (i.e., apartments and credit retail).

Alternatives:

1. Some bank loans at LTV’s up to 85%
2. Some secondary, mezzanine, and 90%-95% interim financing programs also available
3. Credit bond leases: up to 100% LTV

Prepayment Penalty

Typically, the prepayment penalty is yield maintenance with other options available.

Generally, Inland Commercial Mortgage Corporation requires two to three years of historical operating statements and a current rent roll to size transaction.