Loan Criteria

Mortgage Guidelines

1. Loan sizes $1,000,000 to $20,000,000.
2. We will accept business on a nationwide basis.
3. We prefer immediate commitments (90 days or less) but will consider forwards with additional pricing.
4. Amortization term of 5 to 7 years beyond anchor lease terms.  
5. Maximum loan-to-value 75%.
6. Minimum debt service coverage (DSC) 1.25 (based on 25 year amortization).
7. The property types are basically divided into the following categories:

• Anchored shopping centers. This property type represents our core mortgage production volume. We focus on making commercial mortgage loans to finance shopping centers that provide the necessities of life to people within a community. Centers are anchored with long-term leases to one or more strong regional or national grocery and/or drug stores.
• Freestanding Credit Deals. These loans are leased to credit-oriented tenants commonly known as the category killers in their respective industries
  (i.e., Wal-Mart, Publix, Lowe's Home Improvement, Bed Bath & Beyond, Kohl's).
• Doctor owned and occupied Medical Office Buildings next to a hospital with full recourse to the doctors. Recourse is not needed if we have a long-term master lease to a creditworthy tenant (i.e., hospital).
• Industrial distribution properties. Typically these properties have concrete tilt-up exterior walls, minimum 20-28 foot ceiling height, 15% or less office finish, located in industrial park and leased on long-term leases (over 10 years) to a creditworthy tenant or owner occupied.
• Multi-family. Low density, two and three story brick garden units with pitched roofs with quality of B+ or higher.

We are NOT looking for: 

• Short-term leased multi-tenant office, retail, industrial.
• Hotel or Motels.
• Restaurants.
• Mini Warehouses.
• Manufacturing facilities.
• Office showroom, flex space, R&D facilities.
• Nursing Homes.
• Hospitals.
• Mixed use.
• Special Purpose facilities.

Submissions Package

1. City Data 

• Chamber of Commerce General Information
• Population Trends
• Major Industry
• City Map to Scale

2. Demographics 

• Small Town: 3-5-10 radius data
• Metro Area: 1-3-5 radius data

3. Site Data 

• Site Plan/Survey - Full Size
• Site Plan/Survey - 8.5 x 11
• Building Description/Narrative or Plans and Specs
• Traffic Counts
• Traffic Flows
• Management & Leasing Contracts
• Purchase Contract, if acquisition

4. Photographs 

• Subject
• Aerial - 7,500 to 10,000 feet to show surrounding area
• Street Scenes - All Directions
• Surrounding Properties

5. Comparable Properties 

• Map Locating Site
• Major Tenant List
• Rent Comparables - Rents PSF and Square Footage
• Photos of Comparables

6. Financials and Resumes 

• Borrower & Principals - Financials, Resumes and Previous Year's Tax Returns
• Major Tenants - Financials
• Credit Reports on Borrower/General Partner and Principals
• Borrower Questionnaire (See Forms)
• Borrower/Principal Certification (See Forms)
• IRS Form W-9 for Borrower

7. Sales Figures 

• Major Tenant - Sales Per Square Foot (Retail Only)

8. Underwriting 

• Rent Roll - Including Expense Provisions
• Proforma Income Statement

9. Appraisal 

• If Available (Only Originals - No Copies)(May include many of the above items)

10. List of Sources and Uses of Funds 

• Loan Proceeds Applied For
• Sources of Borrower Funds
• Seller's Name and Purchase Price, if acquisition
• Lenders to be paid off - Name and Loan Amount (approx.)
• Other Uses of Funds