These financing programs are generally two to three years in duration
to fit the needs of borrowers requiring financing for projects in
transition or to facilitate capital requirements. Financing may be
arranged on a property to provide cash for purchasing other real
estate or for the repositioning and/or renovation of an existing
property. Loan structure, pricing, loan-to-cost ratios and recourse
requirements are flexible and tailored to meet the needs and risk
assessments of each transaction. Most interim financing includes the
following:
-
Loan-to-cost
ratios of 75% to 90% with up to 100% on pre-leased projects
-
75% loan to value
on most property types; 65% on hotels and special purpose property
-
Structured
financing to facilitate all types or renovation and/or construction
with either reserves or holdbacks built-in until stabilization
-
Maximum loan
amounts are generally 75% of stabilized value that will be achieved
after specified occupancy and NOI requirements provide debt coverage
ratios
-
Faster closes
available for any time sensitive product
-
Recourse
dependent upon perceived risk of project and borrowers financial
position
-
12-24 month terms
with interest only is a typical interim financing period. Options
for extensions are available
-
Rates are
variable and either Libor or Prime based plus margins
-
Permanent loan
may be arranged to take-out the interim financing upon reaching
specified targets, often at no additional cost
Financial Advantage has extensive resources to structure your
financing requirements. The best method is to contact an
Account Executive for details.
