COMMERCIAL FINANCE PROGRAMS
SCOPE Capital Group's debt capabilities extend to generating the most competitive acquisition, bridge, construction, and permanent solutions. This capital is sourced through partnerships with various banks, credit unions, agencies, and insurance companies. SCOPE Capital has arranged financing for many of the country's top real estate investors, owners, and developers.
OVERVIEW
The program is designed to assist real estate owners in financing quality Multifamily real estate throughout the U.S.A Special focus is given to larger metropolitan areas, consideration is also given to assets located in secondary and tertiary markets with market size and economic health of property locale contributing to final loan structures, accepting C Class and affordable properties. Loan opportunities are sourced, underwritten, approved, and serviced by a highly experienced team of professionals committed to premier customer service and delivery of consistent, reliable execution.
QUALIFICATIONS
Ideal borrowers will have a track record of owning apartments buildings. Sponsorship will have an acceptable combined net worth and liquidity (Cash, Stocks, Bonds, etc.) between 5-10% of the loan amount requested. Minimum Credit Score of 620 (lower scores reviewed on a case by case, premium interest Bridge loan products considered).
GENERAL PARAMETERS
Loan Size // $750,000 to $150,000,000 (Average: $2,000,000 - $50,000,000)
Capital Source // Balance Sheets, Life Insurance Correspondence, Freddie Mac, Fannie Mae, HUD, Debt Funds
Loan Term // Typically, 5,7,10 years but will price 15+year terms upon request
Loan Amortization // 5 to 40 years (30-year amortization standard)
Loan Pricing // Fixed interest rates based upon the U.S. Treasury Rate or SWAP Rate for a maturity equal to the requested laon term plus a negotiated spread. Variable interest rate options are also available. (Libor Adjustable Loans Considered).
Recourse Requirements // Properties with a minimum of 3 months stabilized NOI will qualify for Non-Recourse provisions. A Twelve-month recourse burn-off maybe considered for non-agency loans. Non-Recourse with standard bad boy carve out clauses are standard for historically stabilized properties. Loan amounts below $1,000,000 will typically require a personal guarantee.
Interest Rate Lock // Interest rates may be locked for 90-120 days with acceptance of a term sheet.
Prepayment Provisions // Varies on a case by case basis. Open prepayment options are available, subject to a certain yield provision. Also, sliding scale structures (Step-Down Prepayment) are considered fo the borrower. Loans over $10,000,000 will offer several prepayment options including SWAP Breakage and Yield Spread Premium. SCOPE will outline all options to borrowers.
Third Party Reports// Appraisal (Appraisals less than 6 months old considered for reassignment). Phase I environmental - waived on case-by case.
Loan To Value// Not to exceed 80% with typical Max LTV at 75% (1.20x DSCR).
Minimum DSCR// 1.20x, if amortization period shorter than 30 years, will consider 1.10x. If seeking a short-term bridge product, will consider lower.
Construction
Loan to Cost// Up to 85% LTC, 75% Typical or should be no greater than 75% of As-Completed LTV
Term// Up to 24 months with extension options. Mini-Perm available with forward fixed SWAP Rates on a case by case scenario.
Prepayment Penalties//Varies on a case by case basis. Open prepayment options are available, subject to a certain yield provision. Also, sliding scale structures (Step0D
Bridge
Loan to Cost// Up to 85% LTC, 75% Typical or should be no greater than 75% of As-Completed LTV
Term// Up to 24 months with extension options. Mini-Perm available with forward fixed SWAP Rates on a case by case scenario.
Recourse//Non-Recourse Available on Adaptive Reuse or Low Loan to Value Unimproved Land.
Prepayment Penalties//Non-Recourse Available on Adaptive Reuse or Low Loan to Value Unimproved Land.
