| Eligible
Properties: |
Central
Business District and suburban
multi-tenant, single tenant and
credit tenant office properties
are preferred. Requires stabilized
occupancy and income for long
term debt coverage. Bridge loans
and short term debt available
for un-stabilized properties or
repositioning opportunities.
|
| Eligible
Property Locations: |
Nationwide;
located on main roadways with
good visibility and access, or
in an established office park.
Prefer locations in primary office
market areas or with a demonstrated
ability to compete and re-lease
space at market rates. Require
solid market strength as is determined
by, among other factors, absorption
and trends in population and employment. |
| Loan
Types: |
Acquisition,
Development, Constructions, and
Refinance. Mostly financed entirely
by conventional lender- eligible
for SBA if owner occupies at least
51% of property. |
| Debt
Service Coverage: |
Generally,
1.20, depending on the quality
of the location and market. |
| Amortization: |
Full
amortization over term or balloon
payments allowed |
| Interest
Rates: |
Conventional
rate is pegged to the 30 day LIBOR
or similar index, and can range
from 1.5% to 3% over LIBOR, fixed
for 5 or 10 years. SBA rates are
based off the Prime Rate. |
| Fees: |
Reliant Capital Funding
Fees: We will price adjust
our fees according to level of
difficulty and other underwriting
considerations- typically 1-2%
of the loan amount- paid only
if a Commitment Letter is issued.
Third Party Fees:
The following fees can be included
in the financing. An appraisal
report can cost $5000. A Phase
1 environmental can cost $2000.
A survey, recording/filing fees
and title search is also the responsibility
of the borrower. |
| Tenancy: |
Multi-tenant
properties with long leases and/or
staggered lease expiration dates
or credit-tenant properties will
command the most competitive rate
structures however; lower occupancy
may represent a significant value
added opportunity generating aggressive
short term funding rates.
Loans for single tenant properties
will be dependent on the history
and financial strength of the
tenant business and typically
amortize over the life of the
lease term. May require higher
coverage/reserves, depending on
borrower’s strength.
|
| NOI
Calculation: |
Strongly
prefer to receive three full years
of operating history
Rent revenue is the lesser
of the contractual base rents
or current market rents. Expense
recovery must reflect the stabilized
operating history of the project.
Minimum vacancy of 5% or sub-market
average. Recoveries on NNN rents
must be consistent with market.
Rent Roll: Prefer smooth lease
expiration schedules so that
the debt coverage ratio in any
given year does not fall below
break-even. May consider properties
with significant rollover risk
on a case-by-case basis. Tenants
not occupying space and paying
full rent for at least 3-months
will require a seasoning reserve
equal to 3-months' rent.
Management Fee: Minimum management
fee of 5% of effective gross
income. Single tenant buildings
that are fully maintained and
managed by the occupant can
be underwritten at a 3% management
fee.
Reserves: $.10 to $.25 per
square foot for structural reserves
depending on property age and
condition and adjusted in accord
with the engineering report.
Determine Tenant Improvement
and Leasing Commission reserves
from the rollover schedule and
market averages.
|
Are
you looking for office building financing
or refinancing? Our strong influence
with various banks around the nation
will help you get the loan you need.
Instead of approaching tons of random
banks that we don’t have affiliations
with (like some other brokers like
to boast), we package your deal and
approach the banks that we’ve
worked with in the past on similar
deals- the banks we know can handle
your loan in an efficient and competitive
manner, with fast results
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