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Institutional Commercial Real Estate Loan Program

                                                                                     

Fixed-Rate Loan Program with Conventional Terms

                                                                                     

Eligible Property Types: 

Stabilized Properties-Multifamily, Assisted Living,  Franchise Hotels (New Construction, Conversion Acquisition),  Retail Centers (anchor), Warehouse Distribution Centers, Senior Living, Office & Gas- Convenience Stores:

Loan Amount:  $6-50 Million selectively, Higher Loan amounts available

Subordinate Finance Option:  Lender Senior Debt Originated for seasoned loans only.

Loan-to-Value Ratio:  Max 90% LTV

Loan Pricing:   Competitive Rates based on market conditions.

Amortization:  25 to 30 years

Loan Term:    10 to 30 years fixed rate 

Market-Valuation Assessment:  Appraisal Market Valuation must be administered for each loan.

Bankruptcy Remote:  

Single asset bankruptcy remote loan guarantee for all Corporate, Limited Liability and Incorporated structure  of such general partner(s) or shareholder(s).

Condition of Property at Closing:

On the closing date, the buildings and all other improvements comprising the Property must be completed in accordance with the plans and specifications, and to Lender's reasonable satisfaction, free of all Liens and Claims.  No portion of the Property shall be damaged by fire or other causalty.

Survey Requirements: 

A current survey (ALTA) of the Property shall be required by the Lender, and must be in al respects, satisfactory to Lender, prior to the funds disbursed.

Government Approvals: 

Property must be in compliance with all laws, ordinances, rules, regulations and restrictions affecting the construction, occupancy and operation of the Property, including the improvements thereon.  Such evidence to be provided shall include, but not limited to, building permits, zoning compliance, subdivision compliance, certificate of occupancy (C/O), other required certificates, permits and/or licenses which shall be provided prior to closing.

Change in Borrower's Financial Conditions:

Lender shall not be obligated to close or fund the Loan if the Borrower has sustained a substantial deterioration in its financial condition from that represented to Lender prior to the Loan Commitment.  The Applicant shall immediately notify Lender in writing of any material adverse change in the Borrower's or Applicant's financial condition from that represented to Lender prior to the issuance of the Loan Commitment.

Limitation on Recourse:  

With Standard Carve-outs Borrower and its Principals shall be full liable for those actions arising out of the Borrower's fraud, misrepresentation, waste, enviornmental liability, misapplication of rents, misuse of insurance proceeds or condemnation awards, the non-permitted transfer or encumbrance of the Property, the filing of bankruptcy or insolvency proceeding by the Borrower.

Security Collateral:

Borrower shall grant Lender, a First Priority Mortgage on the Property and on all improvements, UCC on fixtures, assignement and security interest in all deposits, leases, rents, reserves, escrows and other monies and personal property (both tangible and intangible property including without limitation contract rights trademarks and trade names) related to the Property (Mortgage) future advances, if any, shall be secured by the Mortgage. To the extent allowable by the Senior Lender, the Mortgage shall also be collateralized with any direct or indirect equity interests of Borrower.

Subordination:  

Subject to approval by the Senior Lender, each owner of the interest in the Borrower and to the extent obtainable, any general contractor or Architect shall execute and deliver the Lender a subordination of any claims against or interests in the Borrower (including a subordination of claims to Lender's post-petition interest accruing after a bankruptcy filing). Leases shall be subordinate to the Mortgage and Borrower shall obtain lease subordination agreements from all current and future tenants.

Guarantor:  

The Loan shall be non-recourse, the Borrower and it's Key Principals, shall be required to provide guarantees against (a) fraud and misrepresentation )b) misapplication of funds (c) the filing of a bankruptcy proceeding during the Loan Terms and (d) Borrower's obligations for enviornmental representations and covenants Lender shall require.

Insurance: 

Lender shall be named as a loss payee on all insurance policies including but not limited to hazard, buildiers risk, wind & flood policies. Lender with one or more mortagee's ALTA Title policy from the title insurer acceptable to the Lender in its sole discretion.

Closing Requirements:  

Closing shall be conditioned upon Lender and approved various documents including, but not limited to Title Policy ALTA a/b, Survey and the Borrower's organizational documents (to be paid by the Borrower).