MMR Realty Advisors
3701 Maywood Court
Carrollton, TX 75007

(214) 924-6026
(972) 492-6753 (fax)



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APARTMENT PROPERTIES
Eligible Properties: Existing, completed buildings must secure each mortgage. The property should be comprised of contiguous parcels and the unit mix, size and layout must be competitive in the market. Accept both garden-style and hi-rise buildings. Consider phased properties if phases can stand their own. Commercial space is limited to 20% of the total net rentable area. Properties with greater than 20% student or military tenancy will be considered. These may require higher coverage and reserves. The minimum acceptable occupancy is the greater of 90% or sustaining occupancy.
Eligible Property Locations: Nationwide. Market areas with a stable current occupancy. Rent concessions will be underwritten cautiously and may require higher coverage and reserves.
Loan Size: $1 Million - $15 Million; may consider up to $25 Million.
Debt Service Coverage: 1.20 minimum.
Loan-to-Value Ratio: Typically, up to 75%; may consider up to 80%.
Loan Term: 7 or 10 years
Amortization: 25 to 30 years depending on age, quality of construction and market location.
Tenancy: Leases should be at least six months at initial occupancy of a tenant. Consider corporate-type, short-term leases providing furniture and maid service on a case-by-case basis.
NOI Calculation: Underwrite revenues based on the trailing 12-month history, with adjustments where appropriate, and with reference to industry standards. If rental increases are consistent, consider annualizing the current rent roll to determine gross income, in place of the trailing 12-month schedule. Limit using "other" income; consider on a case-by-case basis. Generally, underwrite expenses based on the last full fiscal year, plus a 3% trend. In addition, require the following allocations: Vacancy Factor (including all forms of economic rent loss) - The greater of 5% or the actual average for the most recent 12-month period. Management Fee - 5% of effective gross income, or the actual contract rate, or the industry standard, whichever is greater. Replacement Reserves - Generally $250 per unit; based on engineering report, physical inspection and age of property.


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MMR Realty Advisors
3701 Maywood Court
Carrollton, TX 75007
Phone: 214.924.6026
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MMR Realty Advisors