| Program
Overview |
Excellent, Fixed Rate or Floating Rate, Conduit Mortgage Loan Programs
for Skilled Nursing Centers. Non-Recourse with great rates and
minimal costs. |
| Eligible Collateral |
First Mortgage Lien with a security interest in all
furniture,
fixtures, equipment, and other
property related assets, along with
a stock pledge
in the borrowing entity. |
| Loan Term |
Fixed Rate of 7.5 years or Floating
Rate of 3.5 years with two 1-year extensions. |
| Loan Amortization |
25 years amortization |
| Loan Amounts |
Minimum of
$3,000,000 with no maximum. |
| Maximum Loan-to-Value |
75% to 80% using a 13% to 14% Cap
Rate. |
| Minimum Debt Service Coverage |
140%
based on a stress constant. |
| Minimum Beds |
40 beds minimum. |
| Minimum Occupancy |
80% minimum. Vacancy will be figured at
greater of actual market or 5%. |
| Borrowing Entity |
Single Purpose
Entity required. May be a Corporation,
Limited Liability Company or a Limited Partnership. For loans above
$15,000,000 a Special Purpose
Bankruptcy Remote entity is required. |
| Origination Fee |
0.5% to 2% based upon loan structure. |
| Reports |
Environmental Phase
I including lead,
asbestos, PCB's, wetlands, etc.
Engineering Report for properties more than
3 years old including Property
Condition and Seismic (in California).
Appraisal
which is MAI certified and FIRREA and USPAP certified.
AUP -- Financial analysis performed on 3
years operating financial data. Clinical survey review also required. |
| Interest Rates |
Competitive based
upon LTV and DSCR. |
| Recourse |
Non-Recourse except
for standard lender carve-outs. |
| Prepayment Provisions |
Fixed Rate -- Two year Lock-Out from Securitization with Defeasance throughout
the majority of loan term
until the final 6 months which is open to prepayment at par.
Floating Rate -- Two and one half year
Lock-Out with 1% exit fee during following 6 months and
the final 6 months which is open to prepayment at par. |
| Reserves |
Tax and Insurance Escrows are required.
Replacement Reserves of $300 per bed
or actual based on engineering report escrowed at closing. 125% of
repairs found in engineering report is required.
|
| Good Faith Deposit |
A deposit to cover third party costs and expenses is
required at Application with any excess credited at closing. Estimate of
$25,000. |
| Rate Lock Deposit |
1% deposited prior to Rate Lock and credited at
closing. Early Rate locks are available. |
| Assumptions |
Assumptions are
permitted with
lender's approval with a 1% transfer fee plus applicable processing fee. |
| Closing |
Typically within
5 days of rate lock. |
| Lending Territory |
Almost Nationwide -
See Specific
State coverage |
