NewPoint BTR
NewPoint offers attractive short-term financing solutions for the acquisition or refinance of Build-to-Rent (BTR) communities.
BENEFITS
- Provides financing during lease-up and stabilization before agency take-out.
- Delayed draw acquisition facility to support the purchase of newly constructed homes during the term of the loan.
- Non-recourse loan.
ELIGIBLE PROPERTIES
Purpose-built communities of single-family rental homes, including town homes, attached homes, and detached homes.
COLLATERAL
Crossed first lien mortgages, assignments of rents and equity pledge.
LOAN PURPOSE
Purchase, rate-term refinance or cash-out refinance.
TERMS
2-year initial term with extension options.
LOAN AMOUNT
$10 million to $50 million, with larger loans considered on a case-by-case basis.
MAXIMUM LTV
Up to 75%.
INTEREST RATE
Competitive risk adjusted spreads floating over SOFR.
AMORTIZATION
None.
INTEREST ONLY
Full-term interest only.
LOCK-OUT PERIOD
None.
PREPAYMENT PROVISIONS
Spread maintenance.
TAX AND INSURANCE ESCROW
Required.
DEBT SERVICE RESERVE
Required.
REPLACEMENT RESERVE
Generally, required.
RECOURSE REQUIREMENTS
Non-recourse except for standard carve-out provisions.
CASH MANAGEMENT
Springing lockbox.
FEES
Standard origination, application and exit fees apply, with NewPoint waiving exit fees when loans are refinanced through one of its permanent financing options.