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Apartment
Properties
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Mini-Permanent
& Permanent Loans
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| Property
Type: Existing apartments in
good condition on all major island,
near population center, educational
facilities or traditional residential
areas.
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| Property
Age: Post 1975 construction
is preferred, although older
properties will be considered.
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| Preferred
Loan Size: $2 to $25
million. (Larger loans are
considered and priced on an exception
basis.)
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| Loan
Limits: The loan may not
exceed 80% of value or the amount that
produces a minimum debt service
coverage ratio of 120%.
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| Occupancy
Requirements: The property
must have had at least 85% occupancy
for the past twelve months.
Unusual tenancies or lease expiration
characteristics are considered on a
case by case basis.
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| Borrowing
Entity: Generally, a single
purpose entity is required.
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| Leasehold
Properties: Leasehold
properties must have known rents for
the term of the loan. Loan
amortization periods hall not be
greater than 5 years less than the
overall term of the lease.
Various structures to address
leasehold issues are available based
on TransPac's underwriting and
submission package.
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| Loan
Term: 5, 7, or 10 years
balloons. Amortizations are
generally 15-25 years but may be as
long as 30 years for newer properties
in good condition.
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| Rates:
Interest rates are set at a fixed
spread over comparable term treasuries
and vary as a function of coverage
ratios. Both fixed and variable
rate programs are available.
Please call for current spread
requirements.
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| Guarantees:
Guarantees are a direct corollary to
the loan-to-value and debt service
coverage on the property, i.e. higher
loan-to-value ratios may require full
recourse. Non and partial
recourse loans are available, though
will be subject to normal lender
carve-outs.
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| Assumable:
Yes, with consent and a 1% assumption
fee.
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| Reserves:
Tax and insurance reserves are
required. Also, a replacement
reserve account is to be established
and funded at a minimum rate of $200
per unit, per year.
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| Prepayment:
Varies, usually no prepayment for
about half of the term, defeasance or
yield maintenance thereafter.
Open to prepayment without penalty in
the final six months.
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| Exceptions:
We can consider on an exception basis
properties subsidized by State or
Federal Agencies or programs,
military, properties with large levels
of commercial income or corporate
leases, and borrowers with less than
perfect credit history.
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