Lending Parameters

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Conduit/CMBS Preferred Equity/
Mezzanine Investments
Bridge Loan Structured Equity/JV Equity
Loan Amount $3 – $75 million;
may go higher in select cases
$2 – $35 million $5 – $75 million;
may go higher in select cases
$3 – $20MM
Term 5-10 years 2-10 years depending on transaction specifics 3+1+1 3-10 years
Loan-to-value (LTV) Up to 75% on “As Is” Up to 85% Up to 85% 90+%
Debt Yield 7.5% – 11.0%  (based on underwritten cash flow) Tailored to each transaction Tailored to each transaction Tailored to each transaction
Purpose Acquisition or refinancing on stabilized assets Acquisitions, refinancing, repositioning, workouts, recapitalization on stable and transitional assets Acquisition or refinancing on primarily transitional assets Acquisitions, refinancing, repositioning, workouts, recapitalization on stable and transitional assets
Loan Type Fixed rate Fixed or LIBOR-based floating rate loans (low coupon with IRR lookback for transitional/value-add deals) LIBOR-based floating rate Equity investment with a fixed preferred rate of return and targeted overall IRR tailored to each transaction
Structure Senior Mortgage Mezzanine, B note,  preferred equity  or selectively LP Equity Senior Mortgage Preferred or common equity interest
Pricing Pricing will vary, rates will typically fall in 4.5% – 5.5%  range depending on leverage Competitive pricing tailored to each transaction Pricing tailored to each transaction, spreads generally range from 450 bps to 650 bps Competitive pricing tailored to each transaction
Minimum DSCR 1.25x DSCR on underwritten net cash flow 1.10x DSCR (may selectively go lower)
Will consider debt service reserve
1.20x DSCR (may selectively go lower)
Will consider debt service reserve
Based upon operating covenants
Amortization 30 years or less Negotiable, interest only available Negotiable, interest only available Not applicable
Recourse Typically non-recourse except for certain standard carve-outs Typically non-recourse except for certain standard carve-outs Typically non-recourse except for certain standard carve-outs Standard carve-outs
Fees Generally at Par Negotiable origination and exit fees Negotiable, generally 1% origination and 1% exit fee Negotiable
Prepayment Locked out followed by defeasance or yield maintenance Flexible Flexible Flexible
Property Types / Geography Multifamily, Retail, Office, Industrial, Self-Storage,  Mobile Home Parks, and Hospitality properties located in primary and secondary markets throughout the U.S. Multifamily, Retail, Office, Industrial, Self-Storage, and Hospitality properties located in primary and secondary markets throughout the U.S. Multifamily, Retail, Office, Industrial, Self-Storage, Mobile Home Parks, and Hospitality properties located in primary and secondary markets throughout the U.S Multifamily, Retail, Office, Industrial, Self-Storage, and Hospitality properties located in primary and secondary markets throughout the U.S.