Great Eastern Investments



Multifamily Property Program

 

For general and specific inquiries, complete our On-Line Form

Property Type:

Multifamily properties of 20 units or more.

 

Loan Security:

First fee mortgages encumbering completed projects along with customary assignments and pledges. Leaseholds considered on a case-by-case basis.

 

Loan Amount:

$500,000 to $35,000,000 per property. Larger loans are case by case.

 

Term:

Five (5), Seven (7) and Ten (10) Year Terms.

 

Amortization:

Up to Thirty (30) years, or five (5) years less than the remaining life as determined by the Appraisal and Property Condition Report.

 

Maximum LTV:

80%.  Specific transactions may allow Loan to Cost of 85%, or more.

 

Minimum DSCR:

1.20:1 minimum

 

Recourse:

Non-Recourse, except for standard lender carve-outs, which require 100%.

 

:Prepayment Penalty

Required.  Typically, closed for a limited time and then allowable with a yield maintenance or defeasance based penalty.  Specific transactions may have a fixed penalty.

 

Commercial Space

Permitted providing commercial space does not exceed 20% of square footage, or 20% of effective gross income. If either occurs, pricing and structure may change.

 

Replacement Reserves:

Typically, minimum of $200 per unit annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.

 

Military/Students:

Allowed subject to higher debt coverage ratio and risk based pricing. Student properties must be leased as units, not as rooms, and guaranteed by parents.

 

Interest Rates:

Fixed at Closing for the Loan Term. Rate Buy-Downs are available.

 

ALL terms are subject to change.

 

 

 

  

Multifamily Documentation

 

 

Demographic and market information on the subject’s competitive market area.

 

Description of the Property, including square footage, number and type of units, year built, and/or renovated, description of construction details, HVAC, and paving information, including total number of spaces, covered, and handicap spaces.

 

Description of the Borrower, Key Principal, and Property (Marketing) Manager including resume’ with real estate experience and financial capacity, current financial statements, most recent two (2) years of income tax returns, and credit reports.

 

Neighborhood map indicating location of the Subject Property and competitive properties. Copies of the site plan, building layout, and floor plans.

 

Color photographs (including aerial photograph, if available) of the property, surrounding area, building interior and exterior, and parking areas.

 

Property Operating Statements and Occupancy for the past two (2) calendar years, current year-to-date actual and remainder of the year budget, and the trailing 12-month statement.

 

Current Rent Roll (or other evidence of leasing status) to include Breakout of units and rooms; Average square footage of units and rooms; Occupancy of units; Current average annual or monthly rental rate; Estimated current market rental rate; Description of tenant mix

 

Schedule of all significant capital expenditures including costs incurred during the past two (2) years, and a detailed budget for the next twelve (12) months on the renovation and improvements to be completed, coordinated with a draw schedule.

 

 A Use of Proceeds Statement and a Proforma Cash Flow to include the estimated detail of all income, expenses, and allocated reserves on a monthly basis for the term of the loan request.  Such expenses should include estimated monthly interest payments and reserves.

 

Information on comparative properties including size (square footage, # of units), year built, distance from subject, rental rates, occupancy rates, and properties recently built.

 

Copies of recent appraisal, engineering and environmental reports, if available. (Do not order new reports.)

 

Date acquired (if refinancing), original purchase price, and capital improvement costs since acquisition. (If purchasing) a copy of the purchase contract.

 





Loan Programs Contact Us
Company Profile Contact Personnel
Great Eastern Investments, L.L.C.
Tel: 800-366-7769 Fax: 830-796-4774
loan.inquiries@Great-Eastern.com
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