Non-Recourse Construction Loan

Private Placement Debt

 

Private Placement Debt elimiates the regulated instituition underwriting rigors

but still maintaining bank like interest rates

Loan Type:                    Construction to Perm Loan Facility

Loan Amount:              $10 million minimum, no max

LTC:                                75%, typically. 80% Max Loan To Cost

LTV:                                 Must be higher than LTC Ratio

C-PACE:                          85% Combined LTC with Commercial PACE Special Assessment (State by State availbility)

Min DCR:                       1.25 on Stabilized NOI

Interest Rate:                4.25% - 5.50% (fixed rates). 

                                        TBD after full underwriting  of property type, location, leverage & borrower experience 

Loan Loan:                    10 years including construction period

Interest Reserve:          Interest accrues during construction period, no interest reserve required

Amortization:                30 yr amort  when loan converts to perm 30 yrs

Pre-Pay Fee:                  None

Recourse:                      Non-recourse to individuals. Bad boy carve outs required

Investor Fee:                 3.00%

Grace Capital Fee:        1.00%

Engagement Fee:          $15,000 after initial underriting to complete due diligence and submit loan approval package

3rd Party Reports:         Paid by borrower

Application Fee:             Cost of 3rd Party Reports, legal to start loan doc's & site inspection cost

Commitment Fee:         None

Closing:                           Typically 90 days, can be shorter if 3rd Party Reports are completed

Property Types:             All Income Properties except industrial and office

Preferred:                       Hotels, Resorts, ALF, Healthcare, Medical, MultiFamily, Student Housing

Completion Gurantee: Can be from GC

Developer Fee:               Permitted, 5% max

Equity:                             Combination of cash, land at cost, key money, EB5, Improvement Districts and C-PACE

       Required 3rd Party Reports:

  • Appraisal;

  • Market/Feasibility Study on a case by case basis

  • Survey: yes (prior to closing)

  • Phase 1 Environmental: yes (prior to closing)

  • Soils Report: (deal specific)

  • Radon Report:  (deal specific)

  • Seismic Study:  (deal specific)

  • Construction Cost Analysis: (deal specific)

THIS IS NOT AN APPROVED COMMITMENT TO LEND, IT IS HOWEVER A SINCERE OUTLINE OF POSSIBLE TERMS.

PRICING AND TERMS CAN ONLY BE QUOTED AFTER A FULL SUBMISSION AND UNDERWRITING HAS BEEN COMPLETED AND APPROVED.

800.213.2100    

www.gracecapital.com

*This is not a commitment to lend; rates and terms are dependent upon  completed due diligence, term, leverage, amortization, prepayment penalty and other considerations.
Grace Capital Group REP Inc

Licensed under CA DRE #01987016
For Real Estate Professionals, Only

For Real Estate Professionals, Only. California DRE #01987016

© 2013- 2018 Capital Group Real Estate Partners, Inc. Orange County, CA.

All Rights Reserved

Please read our Website Legal Disclaimer.
Grace Capital Group Real  Estate Partners, Inc. is licensed by the California Department of Real Estate.

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