Mortgage Guidelines
1. Loan sizes $1,000,000 to $10,000,000.
2. We will accept business on a nationwide basis.
3. We have immediate fundings only.
4. Amortization term of 5 to 10 years beyond anchor lease terms.
5. Maximum loan-to-value 70%.
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 (target 70% credit to breakeven). This property type represents our core mortgage production volume. We focus on making small commercial mortgage loans to finance shopping centers that provide the necessities of life to people within a community, frequently a smaller city or town. 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, Walgreens, Lowe's Home Improvement, Albertsons, Best Buy, Office Depot, Kohl's)
- Doctor owned and occupied Medical Office Building 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, 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.
- Multi-family - we prefer low density, two story brick garden units with pitched roofs. Quality is B+ or higher.
We are NOT looking for:
- Short term leased multi-tenant office, retail or office/showroom.
- Hotel or Motels.
- Restaurants.
- Mini Warehouses.
- Manufacturing facilities.
- Special purpose facilities unless it is a Bond type of deal.
- Two story retail.
- Office showrooms, flex space, business/service centers.
- Mixed use.
- Nursing Homes.
- Hospitals.