Permanent Financing

Lending Solutions Group provides a multitude of different loan offerings and programs to finance your commercial properties.  We have access to life insurance companies, conduit lenders, traditional lenders, Small Business Administration (SBA) lenders and commercial mortgage-backed securities (CMBS).

 

Asset Classes:  We can finance any of the following asset classes: Multi-Family, Retail, Office, Hospitality, Industrial, Self-Storage, Senior Housing, and Special Purpose.

Location: Nationwide

Loan Amount: Our typical loan amounts are from $250,000 to $50 million.  We can perform loans outside of this range; please contact our consulting center for additional information.

Minimum Debt Service Coverage: 1.20

Loan-To-Value Ratio:  Depending on the asset class, we can typically lend up to 80%.  In some instances, we can lend as much as 95%.

Loan Terms:   Depending on the situation, typical loan periods are from 3 to 35 years.

Amortization: 30 years or less.

 

 

See: Bridge/Interim Financing |Mezzanine Financing | Joint Ventures

General Underwriting Guidelines:

• Multi-Family
  • Vacancy Factor: The greater of 5%, local market average or historical average of subject property.
  • Management Fee: The greater of 3% of effective gross operating income, the actual management contract fee, or the market average.
  • Capital Reserves: Dependent on the age, condition, and capital improvements required to be performed, typically $150-$250 per unit.
• Retail
  • Expenses: The greater of the actual 12 month’s trailing amount, last two year’s historical, or market average.
  • Vacancy: The greater of 5% or market average.  Leases that expire in less than twelve months will be added to the vacancy factor.
  • Management Fee: The greater of 5% or market average.
  • Capital Reserves: Dependent on the age and condition of the subject property, typically from $.10 to $.25 per square foot.  Tenant improvements and leasing commissions will be calculated through historical or market turnover averages.

 

• Office
  • Vacancy: The greater of 5% or market average.  Leases that expire in less than twelve months will be added to the vacancy factor.
  • Management Fee: The greater of 5% or market average.
  • Capital Reserves: Dependent on the age and condition of the subject property, typically from $.10 to $.25 per square foot.  Tenant improvements and leasing commissions will be calculated through historical or market turnover averages.
• Hospitality
  • Vacancy: Reference to current Smith Travel Report (STR) for occupancy and Average Daily Rate (ADR).
  • Management Fee: The greater of the actual contract amount or market average.

 

• Industrial
  • Vacancy: The greater of 5% or market average.  Leases that expire in less than twelve months will be added to the vacancy factor.
  • Management Fee: The greater of 5% or market average.
  • Capital Reserves: Dependent on the age and condition of the subject property, typically from $.10 to $.25 per square foot.  Tenant improvements and leasing commissions will be calculated through historical or market turnover averages