- 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.
5 - 30 years.
Up to 30 years.
Fixed- and variable-rate options available.
75% (80% for fixed-rate tax-exempt bonds).
- 1.30x, if the property is 100% Independent Living.
- 1.40x, if the property is 100% Assisted Living.
- 1.45x, if the property is stand-alone Alzheimer’s/Dementia Care.
- For combinations of IL, AL and ALZ, special rules apply to calculate minimum DSCR.
Supplemental Loans are available.
Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.
30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
30/360 and Actual/360.
Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.
Replacement reserve, tax and insurance escrows are typically required.
In addition to standard third-party reports (including Appraisal, Phase I Environmental Site Assessment and Property Condition Assessment), management and operations reports are required for all Seniors Housing Properties. Licensed Seniors Housing Properties also require a Regulatory Compliance report.
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.