loan amounts
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$1,000,000 to
$25,000,000
|
eligible property types
|
Limited Service National Franchise Hotels
Examples: Days Inn (Choice), Super 8 (Cendant), Fairfield
Inn (Marriott), Hilton Garden Inn (Hilton), Country Inn &
Suites (Carlson)
**Property ADR and Occupancy must be performing
at or above STR Comp Set |
ineligible property types
|
Bed & Breakfast properties, non-flagged properties (some
major tourist destinations are acceptable) |
loan terms
|
Fixed Rate Terms: 5, 10 yrs; Amortization
25 yrs
|
max ltv
|
75% in most markets; 65% in smaller/tertiary markets
CLTV - no seller or subordinate financing allowed
|
Min dscr
|
1.30x
|
max occupancy
|
Maximum underwritten occupancy not to exceed 75% |
prepayment penalties
|
Typically Declining Step-Down; Yield Maintenance available
|
recourse
|
All loans are typically full recourse; non-recourse
available at lower LTV
|
rate lock
|
60-day rate lock available
|
tax & insurance escrows
|
Not required
|
assumability
|
Loans are typically assumable subject to lender approval;
subject to a 1.0% assumption fee
|
msa / markets
|
Nationwide. MSA requirements are typically 20,000 population
within a 25 mile radius |
borrower characteristics
|
Net worth: typically equal to
or greater than the loan amount
Liquidity: 3-6 months
post-closing liquidity (including 1031 accommodator acct) |
min. fico
|
Typically 660 or above; lower scores may be acceptable
based on mitigants
|
reserves
|
Franchise Fee: No less than 4%-6% of rooms revenue
Management Fee: No less than 4%-6% of gross revenue
FF&E Reserve: No less than 4%-6% of rooms revenue |
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