| Conduit/CMBS | Preferred Equity/ Mezzanine Investments |
Bridge Loan | Structured Equity/JV Equity | |
|---|---|---|---|---|
| Loan Amount | $3 – $75 million; may go higher in select cases |
$2 – $50 million | $10 – $75 million; may go higher in select cases |
$3 – $20MM |
| Term | 5-10 years | 2-10 years depending on transaction specifics | 3+1+1 | 3-10 years |
| Loan-to-value (LTV) | Up to 75% on “As Is” | Up to 85% (selectively up to 90% for enhanced Preferred/LP Equity) | Up to 85% | 90+% |
| Debt Yield | 7.0% – 11.0% (based on underwritten cash flow) | Tailored to each transaction | Tailored to each transaction | Tailored to each transaction |
| Purpose | Acquisition/ Refinancing on stabilized assets | Acquisitions, refinancing, repositioning, workouts, recapitalization on stable and transitional assets | Acquisition or refinancing on primarily transitional assets | Acquisitions, refinancing, repositioning, workouts, recapitalization on stable and transitional assets |
| Loan Type | Fixed rate | Fixed or LIBOR-based floating rate loans (current/accrual features where necessary) | LIBOR-based floating rate | Equity investment with a fixed preferred rate of return and targeted overall IRR tailored to each transaction |
| Structure | Senior Mortgage | Mezzanine, B note, Preferred Equity & selectively LP Equity | Senior Mortgage | Preferred or common equity interest |
| Pricing | Pricing will vary, rates will typically fall in 4.0% – 5.0% range depending on leverage | Competitive pricing tailored to each transaction | Pricing tailored to each transaction, spreads generally range from high 300 bps to low 500 bps | Competitive pricing tailored to each transaction |
| Minimum DSCR | 1.25x DSCR on underwritten net cash flow | 1.10x DSCR (may selectively go lower) Will consider debt service reserve |
1.20x DSCR (may selectively go lower) Will consider debt service reserve |
Based upon operating covenants |
| Amortization | 30 years or less | Negotiable, typically interest only | Negotiable, interest only available | Not applicable |
| Recourse | Typically non-recourse except for certain standard carve-outs | Typically non-recourse except for certain standard carve-outs | Typically non-recourse except for certain standard carve-outs | Standard carve-outs |
| Fees | Generally at Par | Negotiable, generally 1% origination and 1% exit fee | Negotiable, generally 1% origination and 1% exit fee | Negotiable |
| Prepayment | Locked out followed by defeasance or yield maintenance | Flexible | Flexible | Flexible |
| Property Types / Geography | Multifamily, Retail, Office, Industrial, Self-Storage, Mobile Home Parks, and Hospitality properties located in primary and secondary markets throughout the U.S. | Multifamily, Retail, Office, Industrial, and Hospitality and Self-Storage properties located in primary and secondary markets throughout the U.S. | Multifamily, Retail, Office, Industrial, Self-Storage, Mobile Home Parks, and Hospitality properties located in primary and secondary markets throughout the U.S. | Multifamily, Retail, Office, Industrial, Self-Storage, and Hospitality properties located in primary and secondary markets throughout the U.S. |