ALT-A & TIER 1 CONTSRUCTION-PERM
| ALT-PRIME MORTGAGES | TIER-1 CONSTRUCTION-MINI-PERM | |
|---|---|---|
| Loan Amount | $1,500,000 to $200,000,000+ | $3,000,000 to $200,000,000+ |
| Loan Term | 3, 5, 7 and 10 Year | 10 Year, inclusive of construction period |
| Asset Types | Medical, mixed-use, office, retail, industrial, multifamily, hotel, self storage and other asset classes to be considered on a case-by-case basis. | Medical, mixed-use, office, retail, industrial, multifamily, hotel, self storage and other asset classes to be considered on a case-by-case basis. |
| Security | First Mortgage, Mezzanine, Equity and FF&E on a case by case basis | First Mortgage and equity is available, will also consider financing FF&E including medical equipment. |
| Borrower Entity | Single purpose entity | Single purpose entity |
| Loan-to-Value | Up to 85% 1st mortgage debt of appraised value. Higher leverage mezzanine transactions considered or equity on a case-by-case basis. | Up to 85% LTC 1st mortgage debt. Higher leverage mezzanine transactions considered or equity on a case-by-case basis. |
| DSCR Requirement | 1.15x on LCF underwritten net cash flow. | 1.15x on LCF underwritten net cash flow. |
| Amortization | Interest only | Interest only |
| Interest Rate | Starting at 4.625% Fixed, ARM at 6mo LIBOR + 215 | Starting at 3.99% Fixed, ARM at 6mo LIBOR + 215 |
| Origination Fee | 2% of the Loan Amount | 2% of the Loan Amount |
| Exit Fee | None | .5% conversion fee from construction to perm loan period due by borrower at C/O. |
| TI/LC, CapEx and Other Reserves | Ongoing TI / LC and CapEx reserves collected, with caps offered or reserves waived on a case-by-case basis | Interest reserves on a case-by-case basis, max LTV with IR's may not exceed 90% of AS COMPLETED VALUE, add .5% to origination if LTC exceeds 88%. |
| Recourse | Non-recourse except for customary bad boy carve-outs | Non-recourse except for customary bad boy carve-outs |
| Pre-Payment Penalty | Short lockout/yield maintenance period then no pre-payment penalty | Short lockout/yield maintenance period then no pre-payment penalty |
Alpha Investment Inc.
201 E. Fifth St. Suite 1900
Cincinnati, OH 45202
201 E. Fifth St. Suite 1900
Cincinnati, OH 45202
