LOAN AMOUNT: $10,000,000 and up.
BORROWER: Developer should be experienced.
LOAN TERM: 1 to 5 years, interest only.
INTEREST RATE: 12% TO 15%, typically paid 5% current with the balance to accrue.
EQUITY PARTICIPATION: 35% to 55%.
TYPE: JV Preferred Equity.
PROPERTIES: Multifamily, senior living, office, retail, medical, warehousing, manufacturing, or industrial properties.
LEVERAGE: Up to 97% of the Approved Budget when combined with the senior construction loan and up to 90% of the equity required.
EXIT FEE: Typically between 1% and 3% of the investment amount.
COMMITMENT FEE: Typically between 1% and 3% of investment amount.
SUBMISSIONS: Property and area description • Architectural drawings/renderings • Sources and use of proceeds statement • Information on construction debt • Sponsor’s financial statements • Sponsor/Developer’s CV • Schedule of Recent Properties Developed • Budget • Pro Forma Operating Statement • Appraisal, if available.