Loan-to-Value:
Maximum of
95% (100% for NNN, bondable [no outs for casualty and condemnation]
leases or NN leases with lease enhancement insurance).
Debt
Coverage:
Minimum of
1.05x (1.00x for NNN, bondable [no outs for casualty and condemnation]
leases or NN leases with lease enhancement insurance).
Interest Rate:
Competitive spread over the comparable Treasury
Term
/ Amortization:
10/30,
15/15 or 20/20 (others available w/ self-amortizing loans, or loans that
amortize to a balance that can be insured by RVI Services, Inc.).
Rate
Lock:
Varies
Application Fee:
$5,000,
payable at application
Placement Fee:
1.0%,
payable to Progressive at closing
Deposit:
Varies,
typically $12,000 deposit covering cost of Third Party Reports, payable
at application.
Recourse:
Non-recourse, subject to standard carve-outs
Prepayment:
Defeasance
or yield maintenance
Assumability:
Fully
assumable with payment of a 1.0% assumption fee
Borrowing Entity:
SPE is
preferred
Ground Leases:
Considered
on a case-by-case basis
Third Party Reports:
Appraisal,
environmental and structural reports are required. Each report will be
subject to review and approval by lender. Approximate cost for Third
Party Reports, $14,000.
Legal:
Lender
legal will be performed by lender appointed counsel. Approximate cost
for Legal, $10,000 to $13,000.
TI/LC Reserves:
Typically
not required
Replacement Reserves:
Replacement Reserves will be calculated and underwritten based on
engineering report findings. Replacement Reserves are typically
collected.
Tax
and Insurance:
Monthly
tax and insurance escrows will be collected
Financial Reporting:
Annual and
quarterly financial statements are required