09-28-2005, 08:40 AM
| | Acquisition/Rehabilitation Bridge and Mezzanine Loans on Multifamily Properties
A larger Eastern-based mortgage banker ---though lending nationwide--- has an
interesting program on existing multifamily projects.
Their typical projects are to be in excess of 100 units; well located, and of
good construction quality.
Underwriting profile :
* Sizes at $2 million to $25 million.
* Loan-to-value at 95%.
* Terms up to 24 months.
* Pricing at 30 day LIBOR plus 500 basis points.
* Recourse above 80% LTV, with standard carve-outs..
* 1.15x debt coverage ratio minimum.
* Generally, interest only.
* A clear preference for a value being created.
* Fees at four points.
* Rehabilitation costs to be no more than 20% of project costs.
If you wish to investigate this source of financing on an acquisition, please
call Mr. Margolin of Chilmark Associates Inc. at 203-353-0897.
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