Eligible Properties:
Anchored or unanchored single-story retail centers. For long term debt funding, property should have occupancy stabilized at a minimum of 90% and should be a strong sales generator with a good reputation in the market. Repositioning or new construction opportunities must be in a strong retail market. Will consider unique property configurations and free-standing stores on a case-by-case basis. Credit tenants with greater than five years remaining on the lease term highly desirable.

Eligible Property Locations:
Nationwide; require direct access to major roadways and high visibility. Prefer infill locations in developed neighborhoods. Unanchored centers should be located in high traffic areas. Where direct competition exists, the property is required to exhibit a stronger market appeal than the competition or a history of retaining its tenancy, sales volume and competitiveness.

Loan Types:
Acquisition, Development, Construction and Permanent Financing available.

Loan Size:
$1Million - $50 Million; will also consider larger portfolio transactions.

Debt Service Coverage:
Generally, 1.20 to 1.30, depending on the quality of the location of the market, the property and the existence and quality of anchor tenants.

Loan-to-Value Ratio:
Up to 80% maximum LTV in first position for permanent financing. Higher leveraged requirements should inquire about mezzanine debt options. Repositions and development opportunities may fund up to 90% LTC and mezzanine loans may be available also.

Loan Term:
7, 10, 15, 20 and 25 year terms available for permanent financing. AD&C loans from 12 -36 months.

Amortization:
30 years or less, depending on major lease terms and expiration, and property age.

Interest Rates:
Pricing is based upon the quality of the real estate, tenant mix and lease terms as well as credit strength. We typically offer LIBOR and Treasury based pricing. Treasury spreads typically run between 90-200 basis points over the corresponding US Treasury for permanent financing. Construction loans run 125-300 over the one month LIBOR.

Fees:
No fees or deposits are required until you accept a loan application.

The Application Fee and other deposits vary based upon the quality of the project and sponsorship.

Anchored / Unanchored :
Allowable anchors include supermarket-drug stores, discount department stores, dry goods, retail and home improvement stores. Financially healthy national, regional or local chains are acceptable. Anchor tenant leases should have at least five years remaining on their leases, as of the date of closing. Anchors should exhibit strong sales histories.

Unanchored centers should have a complimentary tenant mix. Stores in unanchored centers must have strong, stable sales histories. Not more than 25% of the leases should expire in any single year. Credit tenants with base lease terms exceeding five years beyond the final term loan typically will receive most favorable underwriting.

NOI Calculation:
Strongly prefer to receive three full years of operating history. Credit Tenants - Credit tenants (BBB- or better) with base lease terms exceeding five years beyond the final loan term typically may be excluded from vacancy, Tenant Improvement and Leasing Commission reserves.

Expenses - Underwrite expenses using the greater of actual 12 months trailing, last two years historical, or the market/industry average. Expense recovery must reflect the stabilized operating history of the project.

Vacancy - Will be the higher of actual or market with a minimum of 5%. A vacancy factor will be taken on all credit/anchor tenants if the lease term is less than the loan term.

Rent Roll - Prefer smooth lease expiration schedules so that the debt coverage ratio in any given year does not fall below break-even. May consider properties with significant rollover risk on a case-by-case basis. Tenants not occupying space and paying full rent for at least 3-months will require a seasoning reserve equal to 3-months rent. Management Fee - 5% of effective gross income. Single tenant buildings that are fully maintained and managed by the occupant can be underwritten at a 3% management fee.

Reserves - $.10 to $.25 per square foot for structural reserves depending on the property age and condition and adjusted in accord with the engineering report. Determine Tenant Improvement and Leasing Commission reserves from the rollover schedule and market averages.