Conventional Forwards

PRODUCT DESCRIPTION

Unfunded forward commitments for new construction or major rehabilitation.

ELIGIBLE BORROWERS

• Borrower may be a limited partnership, corporation, or limited liability company.
• General partnerships, limited liability partnerships, real estate investment trusts (REITs) and certain trusts may also be acceptable in limited circumstances, subject to additional requirements.
• Borrower must be a Single Purpose Entity (SPE).

ELIGIBLE PROPERTY TYPES

To-be-built or substantially rehabilitated garden, mid-rise, high-rise or build-to-rent communities.

TERMS

• Fixed rate - up to 15 years.
• Floating rate - up to 10 years.

AMOUNT

Minimum $10 million.

TYPE OF FUNDING

Forward commitment to provide permanent financing upon successful conversion from construction phase to permanent phase.

MINIMUM DEBT COVERAGE RATIO (DCR)

1.25x.

MAXIMUM LOAN-TO-VALUE (LTV) RATIO

80%.

MAXIMUM FORWARD COMMITMENT TERM

Up to 48 months (with available extensions).

MAXIMUM AMORTIZATION

Up to 35 years, depending on the market. Please contact your Originator to discuss.

PREPAYMENT PROVISIONS

Defeasance or yield maintenance.

SUBORDINATE FINANCING

Not permitted.

TAX AND INSURANCE ESCROWS

Required.

FEES

Application fee, conversion assurance fee, standby fee, make-whole provision (including breakage).

 

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.