Office Building Nationwide Lending
Eligible Properties
CBD and /or suburban multi-tenant office proper ties are eligible. Should
have a stabilized Income. Value-add / reposition proper ties are
considered and strength of sponsor is a focus. Unacceptable candidates
include physical or functionally obsolete buildings, buildings that cannot
be converted to multi-tenant uses and economically obsolete properties.
Eligible Property Locations
Nationwide; located on main roadways with good visibility and access, or
in an established office park. Prefer locations in primary office market
areas or with a demonstrated ability to compete and re-lease space at
published market rates.
Loan Size
$500,000 & up
Debt Service Coverage
1.20 x minimum; lower DSCR coverage allowed on a case-by-case basis
Loan-to-Value
Up to 85% in a first position. Properties requiring higher leverage should
inquire about mezzanine financing options.
Loan Terms
3, 5, 7, 10, 15, 20, 25 or 30 years
Amortization
30 years or less depending on major lease terms and expiration, and proper
t y age.
Tenancy
Prefer multi-tenant and /or credit-tenant proper ties. Loans for single
tenant proper ties will normally be amortized over the remaining term of
the lease and typically will require higher coverage and reserves.
Rent Roll
Prefer smooth lease expiration schedules so that the debt coverage ratio
in any given year does not fall below break-even. May consider properties
with significant rollover risk on a case-by-case basis. Tenants not
occupying space and paying full rent for at least 3-months will require a
seasoning reserve equal to 3-months’ rent
