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Assisted Care Living Facilities |
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- Property Type:
Assisted Care Living Facilities with private pay 70 units, or more, that
have experienced ownership and management, good location, occupancy, and
maintenance.
- Loan
Security: First fee mortgage encumbering completed projects along with
customary assignments and pledges.
- Loan Amount:
$1,500,000 to $15,000,000 per property.
- Term: Ten
(10) Years.
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Amortization: Twenty-five (25) years, or five (5) years less than the
remaining life as determined by the Appraisal and Property Condition
Report.
- Maximum LTV:
70%
- Minimum
DSCR: 1.40:1
- Recourse:
Non-recourse, except for standard lender carve-outs which require 100%
recourse.
- Assumption:
Permitted with the payment of an Assumption Fee, typically 1% plus legal
expenses, and with Lender's credit approval.
- Borrowing
Entity: Single Asset/single purpose structure that is Bankruptcy
Remote.
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Documentation: Standard note and mortgage affidavits, and ancillary
documents.
- Rent Roll:
Most recent detailed year end, trailing twelve months, and current ( not more
than 30 days old ).
- Replacement
Reserves: Typically, minimum of $0.10 to $0.25 per square foot annually, or
as scheduled in the Property Condition Assessment Report. Monthly escrow is
required.
- Tax &
Insurance: Monthly escrow is required.
- Vacancy:
Economic minimum of 5%, actual, or market, whichever is greater. Minimum 85%
average historical occupancy.
- Operating
Statements: Three years of historical operating statements, tax returns,
and current year-to-date.
- Survey: ALTA
standard required and ordered by lender by an approved surveyor.
- Title Insurance:
ALTA standard with applicable riders. Lender orders title through First
American Title Insurance Company.
- Subordinate
Financing: Typically, not permitted. Lender will consider prior approval
with fully subordinated, non-foreclosable cash flow only.
- Prepayment
Penalty: Lockout for one-half of the loan term followed by full yield
maintenance to term. No penalty if prepaid during the final 60 days of the
term.
- Application
Fee: None.
- Commitment Fee:
Two percent (2%) of the loan amount, or $25,000, whichever is greater, is
due and payable upon the lender's issuance of the Loan Commitment and the
Borrower's acceptance. Such loan commitment fee shall be held in Lender's
Escrow Account and is refundable less third party expenses for the property
inspection, the MAI appraisal, the Property Condition Assessment Report, and
Environmental Site Assessment Phase I, underwriting and processing costs, legal
fees, and other costs customary to the loan transaction. The remaining balance
shall be credited or refunded at the loan closing.
- Third Party
Reports: Includes Inspection, Environmental Site Assessment Phase I,
Property Condition Assessment, and Appraisal. All Report s are ordered,
controlled, and completed through consultants pre-approved and authorized by
the Lender. Costs are, typically, in the $7,500 range, dependent upon the
location and complexity of the property.
- Legal:
Typically range $5,000 to $7,500 dependent upon the complexity of the
borrowing entity and property.
- Interest
Rates: Request the most current Pricing Matrix. Rate Buy-Downs are
available
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All
lending terms and conditions are subject to change. |
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