UNFUNDED FORWARD COMMITMENTS FOR NEW CONSTRUCTION OR MAJOR REHABILITATION
Conventional Forwards
UNFUNDED FORWARD COMMITMENTS FOR NEW CONSTRUCTION OR MAJOR REHABILITATION
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ELIGIBLE BORROWERS
• Borrower may be a limited partnership, corporation, or limited liability company.
• General partnerships, limited liability partnerships, real estate investment trusts
(REITs), and certain trusts may also be acceptable in limited circumstances, subject to additional requirements.
• Borrower must be a Single Purpose Entity (SPE). -
ELIGIBLE PROPERTY TYPES
To-be-built or substantially rehabilitated garden, mid-rise, high-rise, or build-to-rent communities.
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TERMS
• Fixed Rate – Up to 15 years.
• Floating Rate – Up to 10 years. -
AMOUNT
Minimum $10 million.
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TYPE OF FUNDING
Forward commitment to provide permanent financing upon successful conversion from construction phase to permanent phase.
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MINIMUM DEBT COVERAGE RATIO (DCR)
1.25x.
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MAXIMUM LOAN-TO-VALUE (LTV) RATIO
80%.
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MAXIMUM FORWARD COMMITMENT TERM
Up to 48 months (with available extensions).
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MAXIMUM AMORTIZATION
Up to 35 years, depending on the market.
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PREPAYMENT PROVISIONS
Defeasance or yield maintenance.
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SUBORDINATE FINANCING
Not permitted.
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TAX AND INSURANCE ESCROWS
Required.
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FEES
Application fee, conversion assurance fee, standby fee, make-whole provision (including breakage).
