Rate: Libor + 175-300bps.; I/O.

LTC: Loan level depends on recourse/pre-leasing up to 80%.

Lender Fee: Typically 1 point.

Term: Tied to completion + 6-12 month extension are available

Other:

• Some pre-leasing typically required unless apartments.
  
• Typically 20%-40% +/- equity depending on recourse level and pre-leasing.
  

Mezz and Permanent Loan Financing available.

Typical Programs

Open-Ended Construction Loans

Bridge Loan

Preferred Equity

Loan Size up to $40,000,000.

Terms typically up to 36 months.

Structure typically interest only.

Rate and Fees: Starting at 4.5% - (Will vary based on risk and term length.)

Loan to Value: Up to 80% of the current market value of the collateral as determined by lender.

Collateral: first lien position.

Guaranty recourse or Non-recourse.

Use of Funds: Acquisition, refinance and value add.

Other: Mezz available on a case by case bases.

As a matter of reference, here are some basic economic deal structure parameters/guidelines for equity financing as mentioned above (Note: size of promotion needed for IRR look-back, equity return preference, and other deal items vary depending upon the transaction risks and amount of partner’s equity. This is a basic economic guideline as other conditions/terms may apply after underwriting/negotiations. This is not an offer or a commitment, all suggested rates, terms, and conditions, are subject to change based on each investor’s underwriting and due diligence.)

• SPE required.
  
• Invest/sponsor co-invest typically from 70-95%/30-5%.
  
• 3 to 5 year hold on yield plays and preferred equity (longer investment period possible on a case by case basis.)
  
• Equity multiplier typically 1.5 to 2.0.
  
• Target 8-12% typical preferred return.
  
• Profit splits after promotes/waterfall typically from 50%-70% (The length of the investment and available case flow at exit determines the final profit split.  The exit strategy will be pre-determined for each project.
  
• Lookback IRR typically from high teens to low 20's is typical depending on level of co-investment (Promotes/waterfalls typical after predetermined hurdles are reached.
  
• Exit fees typically structured to meet target returns as needed.
  
• Asset Management fees are typically 0.15% to 0.25% of the total project cost per annum paid monthly.
  
• Sponsor manages day to day activities with major decisions managed by both parties is typical.
  
• Cost guarantee: Sponsor to guarantee the cost of  the vertical construction of the building and sponsor/developer typically provides loan guarantees.
  
• Market rate developer fees.