MMR Realty Advisors
3701 Maywood Court
214.924.6026
Carrollton, TX 75007
| Other Loan Types |
| Hotels |
| Offices |
| Apartments |
| Industrial |
| Mobile Home Park |
| Retail |
| Self-Storage |
| Mezzanine |
| Small |
| SMALL
LOAN PROGRAM HIGHLIGHTS |
|
| Eligible Property Types |
|
| Interest Rate: | Fixed at the then current Treasury bond yield of similar maturity plus a margin to be determined according to market conditions and the characteristics of any given prospective loan. |
| Loan Size: | $500,000 to $3 million typically. |
| Loan Term: | 10 year balloons, with other maturities considered on a case-by-case basis. |
| Loan Amortization: | 25 years (up to 30 years in some cases with post- 1980 properties). |
| Loan Term: | Coterminous with the maturity of the first lien financing. Due on sale or on pay off of the first lien financing.. |
| Debt Service Coverage Ratio: | Minimum 1.25x |
| Loan-to-Value-Ratio: | 75% of appraised value (up to 80% in some cases of multifamily properties). |
| Prepayment: | Prohibited for the first four (4) years. Thereafter, prepayment in full subject to the prepayment premium equal to Lender's standard yield maintenance formula. The loan will be open to prepayment, in full only, during last three (3) months of the loan term, and no prepayment penalty will be charged. |
| Secondary Financing | Typically not allowed. |
| Security: | Assignment of all Partnership interests in the mezzanine borrower. |
| Recourse/Exculpation: | Non-recourse (except with respect to environmental matters and lender's standard carve-outs). |
| Loan Escrows: | Borrower will contribute monthly to an escrow account for real estate taxes and property insurance. |
| Apartments: | The Borrower will also establish a monthly capital replacement escrow reserve equal to the great of i) $250 per unit per year for apartments; $50 per pad for mobile home parks or ii) an amount determined by lender on the basis of the results of a property condition report. |
| Retail-Office-Industrial: | An analysis must be performed that is designed to anticipate cash flow shortfalls based on leases in place at any given time during the term of the loan plus two years. A lease rollover reserve to offset any expected cash shortfall(s) will be calculated and established based on market conditions, typically using the following assumptions: |
| Retail: | Tenant improvements at $5.00/$2.50 for new leases/renewals, leasing commissions at 5%/2%, tenant retention rate at 60-65% on multiple tenants, and time required to release at 6-12 months; and average rental rate and lease term based on the current rent roll. |
| Office: | Tenant improvements at $7.00/$3.00 for new leases/renewals (depending on amount of office finish), leasing commissions at 5%/2%, tenant retention rate at 60-65% on multiple tenants, and time required to re-lease at 6-12 months; and average rental rate and lease term based on the current roll rent. |
| Industrial: | Tenant improvements at $2.50/$1.00 for new leases/renewals (depending on amount of office finish), leasing commissions at 5%/2%, tenant retention rate at 60-65% on multiple tenants, and time required to re-lease at 6-12 months; and average rental rate and lease term based on the current rent roll. |