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Non-Recourse Construction Loan

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Private Placement Debt

 

Private Placement Debt elimiates the regulated instituition underwriting rigors

but still maintaining bank like interest rates

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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)

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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.

Talk to An Executive Team Member

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