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Bridge

NewPoint Bridge

BENEFITS
  • Flexible loan terms and prepayment provisions tailored to borrower’s business plan.
  • Balance sheet lender with smooth transition to in-house Agency takeout.
  • In-house servicing provides effective and efficient future fundings and draw requests.
  • Competitive pricing with exit fees waived if permanent debt provided by NewPoint.
  • Loan proceeds can be utilized to complete capital improvements.
ELIGIBILITY
  • Conventional and affordable multifamily properties that meet NewPoint’s permanent debt offerings; student housing and seniors considered on a case-by-case basis.
  • Properties located in primary and secondary markets; tertiary markets considered on a case-by-case basis.
  • Loans may be used for acquisition, refinance or recapitalization.
TERMS

Generally, three-year initial terms with extensions up to a maximum of five years.

LOAN AMOUNT

$10 million to $100 million, with larger loan sizes considered on a case-by-case basis.

MAXIMUM LTC

Up to 80%, including planned capital improvements and closing costs.

MAXIMUM LTV

Generally, 75% upon stabilization, subject to being able to qualify for Fannie Mae, Freddie Mac or FHA refinancing upon maturity.

MINIMUM DSCR

Generally, 1.25x upon stabilization, subject to being able to qualify for Fannie Mae, Freddie Mac or FHA refinancing upon maturity.

INTEREST RATE

Competitive risk adjusted spreads floating over 30-day SOFR.

PAYMENT PROVISIONS

Flexible, with customized prepayments available depending on borrower strategy.

TAX AND INSURANCE ESCROW

Generally, required.

REPLACEMENT RESERVE DEPOSIT

Generally, waived during renovation period for items being addressed through capital structure.

RECOURSE REQUIREMENTS

Non-recourse except for standard carve-out provisions.

SUBORDINATE FINANCING

Generally, not allowed.

FEES

Standard origination, application and exit fees apply, with NewPoint waiving exit fees when loans are refinanced through one of its permanent financing options.

ASSUMPTION

Loans are typically not assumable.

 

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.