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Industrial
Properties
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Mini-Permanent
& Permanent Financing
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| Property
Type: Modern
light-industrial buildings in suitably
zoned commercial or industrial
areas. Strong preference for fee
simple properties located within
planned industrial parks throughout
the island, where the industrial
market is strong and occupancies are
high. Preference for high-ceiling
warehouse, distribution and
self-storage buildings.
Properties are required to possess all
functional requirements of
accessibility, parking, loading,
utilities, and fire protection.
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| Leasehold
Properties: Leasehold
properties must have known rents for
the term of the loan. Loan
amortization periods shall 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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| Leasing:
Properties should be substantially
leased for terms consistent with the
local market, but generally not less
than five years. Multi-tenant
buildings leased to third-party users
are preferred but single tenant
buildings will be considered subject
to credit review. Reserves will
be required for loss of revenue and
refit/leasing costs.
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| Property
Age: Facilities should have
been completed and in operation for at
least 12 months. Properties
built or substantially renovated since
1975 are preferred.
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| Preferred
Loan Size: $2 to $25
million. (Larger loans are considered
on an exception basis.)
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| Loan
Limits: The loan to value
ratio may not exceed 80%. The
minimum debt service coverage ratio is
120%. Lower coverage ratios may
be accepted for facilities lease to
credit-worthy tenants on a long term
basis.
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| Occupancy:
Occupancy should be a minimum of
85%. The facility should be
located in a market area in which
demand is expected to increase.
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| Borrowing
Entity: Generally, a single
purpose entity is required.
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| Loan
Term: 3, 5, 7, 10 and 15
year terms are available a the the
borrower's option. Amortization
is on a 15-25 year term. For
newer buildings on fee simple land,
the amortization can be as high as 30
years.
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| Rates:
The interest rate is set at a fixed
spread over comparable terms
treasuries, and vary based on coverage
ratios. A variable interest rate
floating at a spread over the 1, 3 and
5 Year Treasuries can be
offered. Please call for current
rate and spread quotes.
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| Guarantees:
Guarantees are a direct corollary to
the loan-to-value and debt service
coverage on the property. Non
and partial recourse loans are
available, though will be subject to
normal lender carve-outs.
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| Assumable:
Generally, yes, with consent and
payment of an assumption fee.
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| Reserves:
Tax and insurance reserves are
required. Also, a replacement
reserve account is to be established
and funded to provide for capital
replacements, tenant improvements,
leasing commissions and related costs
and rental interruption.
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| Prepayment:
Adjustable rate financing, generally,
will not require a prepayment
penalty. For fixed rate
financing, generally, prepayment will
be prohibited for some period,
depending on the term, and then be
subject to defeasance or yield
maintenance until the final six
months, during which prepayment is
allowed without penalty.
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| Use
of Proceeds: Loans are
available for both purchase and
refinance transactions.
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