Near Stabilized Execution
- Ability to pay off construction loan and add permanent non-recourse financing prior to full stabilization.
- Competitive pricing.
- Certainty of execution.
- Speed in processing and underwriting.
- Conventional and Multifamily Affordable Housing Properties.
- Partially leased, newly constructed or recently renovated communities.
- Strong borrowers with demonstrated lease-up track record.
- Properties in strong and nationwide markets.
$10 million or greater.
5-, 7-, 10- and 12-year term options are available.
5 - 30 years.
Fixed- and variable-rate options available.
- Maximum LTV shall be Tier compliant.
- For a Tier 2 level – 75% of “as stabilized” loan-to value.
- Minimum DSCR shall be Tier compliant. For a Tier 2 level – Underwritten DSCR of 1.25x, 1.15x for MAH loans.
- Property is expected to achieve Stabilized Residential Occupancy and the applicable required Underwritten Debt Service Coverage Ratio within 120 days after the Mortgage Loan Origination Date.
Monthly payments of interest only for the first 12 months of the loan term, based on the actual interest rate. An additional period of interest-only payments may be available.
Minimum physical occupancy of 75% at rate lock. MBS Additional Disclosure is required. Full disbursement of loan proceeds at closing.
Flexible prepayment options available, including yield maintenance and declining prepayment premium.
30- to 180-day commitments; Borrowers may lock a rate with the Streamlined Rate Lock option.
30/360 and Actual/360.
Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.
Replacement reserve, tax and insurance escrows are typically required.
Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment and Property Condition Assessment.
Loans are typically assumable, subject to review and approval of the new Borrower’s financial capacity and experience.
This sheet sets out the general guidelines of a loan program and is designed solely as an aid to prospective borrowers and other clients. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint Real Estate Capital LLC.