| |
Tier I |
Tier II |
Tier III |
| Minimum Origination Fee |
0% - 1% |
1% -2% |
2% -3% |
| Spread over 1 Mo. LIBOR |
2.5% to 3.00% |
3.00% to 3.5% |
4.00 to 5.00% |
| Minimum LIBOR Floor |
2.00% |
2.00% |
2.00% |
| Minimum Exit Fee |
0.00% |
0.50% |
1.00% |
| Minimum Penalized Exit Fee |
1.0% exit fee if not financed with Nomura |
2.0% exit fee if not financed with Nomura |
3.0% exit fee if not financed with Nomura Equity Kicker or Additional Fees possible |
| If Loan to Cost >85% |
Consider additional 0.5% U/W fee; Equity Maintenance Tests if Loan to Cost is 90% |
Consider additional 0.5% Origination Fee; Equity Maintenance and/or Minimum DSCR Tests |
Consider additional 0.5% Origination Fee; Equity Maintenance and/or Minimum DSCR Tests |
| As-Is Cash Flow |
Conduit U/W with full vacancy and reserves |
Income in place, actual expenses and reserves, no TIs/LC's or Replacement Reserves required if escrows are sufficient. |
Income in place, actual expenses and reserves, no TIs/LC's or Replacement Reserves required if escrows are sufficient. |
| As-Is DSCR |
1.5x minimum based on the greater of current LIBOR plus spread or a minimum of 7.5% coupon (IO) |
1.05x minimum based on the greater of current LIBOR plus spread or a minimum of 7.5% coupon (IO) |
0.90xz minimum based on the greater of current LIBOR plus spread or a minimum of 7.5 coupon (IO) |
| Stabilized DSCR |
1.0x (1.20x for hotels) fixed rate constants - see below |
1.5x (1.25x for hotels) fixed rate constants - see below |
1.20x (1.30x for hotels) fixed rate constants - see below |
| As-Is Stress LTV |
100% on conduit Underwriting |
NAP |
NAP |
| Stabilized Stress LTV |
92.5% - see core conduit for Stress Capitalization rates. 100% for currently stabilized assets |
90% - see core conduit for Stress Capitalization rates |
87.5% - see core conduit for Stress Capitalization rates |
| As-Is Appraised LTV |
80% as is LTV on entire loan amount (as is value) |
80% as is LTV on entire loan (as as is value + capital escrows) |
100% as is TV on entire loan (as is value + capital escrows) |
| Stabilized Appraised LTV |
75% of stabilized value (70% for hotels) 80% if property is currently stabilized |
75% of stabilized value (70% for hotels) |
70% of stabilized value (65% for hotels) |
| Max Loan to Cost |
90% of total cost |
90% of total cost |
90% of total cost |
| General Overview of Tier I, II and III |
- Stabilized or expected within 6 months
- Examples include anchored center with signed leases to the subject to a stabilized occupancy rate, or a new or renovated multifamily property that is expected to stabilize in the next 3-6 months.
- No DS reserves needed or required
- Escrows for replacement
- No DS reserves needed or required
- Escrows for replacement reserves and TI/LCs similar to conduit U/W |
- Stabilization expected in approx. 12 months
-Examples include multifamily properties currently under renovation, or commercial properties with leases out for signature that will stabilize the asset
-No or minimal DA reserves
- Escrows required for TIs, LCs, Capital improvements, etc. |
- Stabilization in approx. 18 to 24 months
- Examples include properties that have not begun renovations, or riskier assets such as hotels that are nearing completion of renovations
- DS Reserve likely
- Escrows required for TIs, LCs, Capital Improvements, etc. |
| LIBOR Caps |
Required (see table below for pricing indications) |
Required (see table below for pricing indications) |
Required (see table below for pricing indications) |
| Structural Issues/Documents |
- SPE, Independent director if over $5mm
- Cash Management
- Strong Principal on carve-outs
- Some document flexibility
|
- SPE w/Independent Director/Non-Consolidation
- Cash Management or Lockbox
- Strong Principal on carve-outs
- Heavy reporting requirements
- Limited to no document flexibility |
- SPE w/Independent Director/Non-Consolidation
- Lockbox
- Strong Principal on carve-outs
- Heavy reporting requirements
- Limited to no document flexibility
- Provisions for monitoring draws of reserves
|
| |
|
|
|
| Loan Term |
(a) 36 Months |
| |
(b) 24 Months w/ an option to extend 12 months with a 1% fee or 1/2% fee and 50bp rate increase |
| Call Protection |
(a) L (18), 2% (6), Open (6) Lockout from closing |
| |
(b) L (12), Open (remainder) :Lockout starts at Securitization, with a maximum Lockout for 18 months |
| Rate Buy Down |
(a) For 36 month loans, optional 1% up front buys down 45 bps in rate |
| |
(b) For 24 month loans, optional 1% up front buys down 60 bps in rate |
| Property Types |
No limited Service Hotels or Healthcare except under special circumstances and at a low leverage. No exotic Property Types |
| LIBOR Caps |
A LIBOR Cap will be required for loans with a DSCR of less than 1.0x, based on the Stress Mortgage Constants shown above |
| |
The LIBOR Strike Cap Rate will be determined by Credit Committee |
| |
|
| |
Libor Caps: Estimated Cost per $Million |
