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
*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