FINANCING TYPES

Construction/Permanent Financing

  • Rate fixed at start of construction
  • One closing
  • 10 – 15 year fixed rates with amortizations to 25 years
  • Some pre-leasing required on commercial properties
  • Apartment 2nd phase possible

 

Short Term to Long Term Fixed Rate Permanent Financing

 

Pricing Matrix

Term (years)

5/7

 10 15 20 25
Amortization 10 10      
15 15 15    
20 20 20 20  
25 25 25   25
30

30

 30    
Rates: Call your local Laureate Capital LLC office for current rates

General Parameters - Commercial and Multi-Family

  • Property Types - Multi-family, retail anchored, unanchored and freestanding, industrial, office, medical office, hospitality, self storage and restaurant ("A" locations)

  • Loan to Value - up to 80%

  • Size - $500,000 to Unlimited

  • Prepayment Options
    - Yield Maintenance or Defeasance
    - Fixed premium schedules declining to 1% or par
    - Up to 10% annual prepayment with no premium

  • Lender Costs 
    - Most loans at par
    - Third Party Inspection (Appraisal, Engineering, Environmental)
    - Legal Fees

  • Forward Commitments
    - Available up to 24 months forward with a rate premium
    - Initial funding with future funding for construction or rehab

  • Recourse - Non-recourse available for monetary default

  • Flexible Terms -

    - Interest only features
    - Unique property characteristics
    - Fund with partial leasing
    - Variable amortizations to match cash flow
    - Practical with environmental situations
    - Unsubordinated ground leases and air rights
    - Collateral substitution
    - Second mortgages allowed
    - 80% loan to value in special situations

 

Variable Rate Permanent Financing

 

Pricing Matrix

Term 3 – 25 Years
Rate Adjustments 30 & 90 Days
Current Spreads 75 - 150 over LIBOR or its equivalent based upon Loan to Value

General Parameters - Commercial and Multi-Family

  • Property Types - Multi-family, retail anchored, unanchored and freestanding, industrial, office, medical office, hospitality, self storage and restaurant ("A" locations)

  • Loan to Value - up to 80%

  • Size - $500,000 to Unlimited

  • Prepayment Options
    - Yield Maintenance or Defeasance
    - Fixed premium schedules declining to 1% or par
    - Up to 10% annual prepayment with no premium offered by many lenders

  • Lender Costs 
    - Most loans at par
    - Third Party Inspection (Appraisal, Engineering, Environmental)
    - Legal Fees

  • Forward Commitments
    - Available up to 12 months forward with a rate premium
    - Initial funding with future funding for construction or rehab

  • Recourse - Non-recourse available for monetary default

  • Flexible Terms -

    - Interest only features
    - Unique property characteristics
    - Fund with partial leasing
    - Variable amortizations to match cash flow
    - Practical with environmental situations
    - Unsubordinated ground leases and air rights
    - Collateral substitution
    - Second mortgages allowed
    - 80% loan to value in special situations

 

Credit Tenant Lease (CTL) Financing

  • Debt coverage as low as 1.0 to 1.05
  • Loans in excess of cost allowed
  • Loan term matches lease term
  • Extended term beyond primary lease possible
  • Amortization can match increases in lease payments for maximum dollars
  • 95% LTV Max