www.centerline.com asset management affordable housing commercial real estate credit risk products bridge loan financing (Secured by 1st lien) This product allows borrowers to finance properties Amortization pms 229/8003 or portfolios with “value-added” opportunities. Cen- Interest only available. terline Capital Group can structure financing that will allow borrow- ers to carefully manage a re-leasing or repositioning program. Prepayment Open to prepayment with payment of exit fees. Property Types “Value-added” commercial properties including multifamily, office, Pledge industrial, retail, self-storage and mobile home parks. Centerline First-lien assignment of property interest. Single-purpose entities Capital Group will also consider select hospitality and mixed-use preferred. property types. Emphasis will be placed projects that need short- term lease-up, repositioning or rehabilitation. Fees Typically .5-1% of loan balance. Exit fees range from .25-1%. Exten- Maximum LTV sion options range from .25-.5% per 12 month option. Up to 80%. Certain loans may require sponsor guarantees. Recourse Minimum DSCR Non-recourse except for customary environmental, malfeasance 1.05x initial coverage on an amortizing basis. Some loans will and fraud carve-outs. Loans with elevated risks may require full have less than a 1.0x coverage in which case an interest reserve or partial sponsor recourse guarantees or additional structuring will be required. Low coverage loans may require an interest re- requirements such as letters of credit. Loans with any construc- serve. Stabilized coverage should be Multifamily-1.15; Office-1.20; tion or rehab component will require a completion guaranty from Retail-1.20; Industrial-1.20; Mobile Home Parks-1.20; Hospitality- the sponsor. 1.45; Self Storage-1.20. Reserves Loan Amount Required for insurance, real estate taxes, leasing commissions, $5 million – $50 million. and tenant improvements. Reserves for replacement reserves are on a case by case basis (e.g., would not apply where exten- Term sive rehabilitation is intended). Reserves for identified deferred From 18 to 36 months; with two 12 month extension options. maintenance and renovation/ repositioning costs. Again, interest reserves may also be required to cover debt service shortfalls dur- Interest Rate ing repositioning. Variable and fixed rates available. Loans may require interest rate caps to ensure a minimum DSCR. Cash Management Cash management (lock-box) may be required on certain loans. Spread Market competitive pricing available upon request. Loan Costs Borrower is responsible for all due diligence and transaction costs.
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