| |
Client A |
Client
B |
Client
C |
| Program Total |
$100M (4-5 transactions) |
$25-30M |
$75-$125M (4 – 6 transactions) |
|
Loan Type |
1st mortgages |
1st Mortgages or Sub Debt |
1st Mortgages or Sub Debt |
|
Loan Size |
$15M-30M |
$5M-$30M |
$5M-25M |
|
Coupon Rate |
6.75-7.00% (approx. 155 -170 bps over matrix) |
8.50% |
9% pay rate with accrual to 11% |
|
Leverage Guidelines |
50% LTV |
65% LTV or less (79% mezz) |
Up to 70-75% LTV (80% mezz) |
|
Loan Term |
3-7 years |
3-7 years |
5 years or less preferred |
|
Amortization |
25 year amortization |
25 -30 year amortization |
IO available but
amortization preferred |
| DSC |
2.0x |
1.0x on a 15% constant |
1.20x on trailing 12 on coupon pay rate |
|
Recourse |
Generally Non-recourse |
Non-recourse |
Generally Non-recourse |
| Pre-Pay |
Yield Maintenance |
YM or Declining % |
Yield Maintenance |
|
Loan Fees |
0.50% minimum |
0.50% minimum |
1%-2% |
|
Brands |
Major flags (Hilton, Starwood, Intercontinental, Marriott,
Hyatt, Kimpton) |
Major flags (Hilton, Starwood, Intercontinental, Marriott,
Hyatt, Kimpton) |
Major flags preferred (Hilton, Starwood, Intercontinental,
Marriott, Hyatt, Kimpton) but will consider others |
|
Property Type |
“A” quality branded full service, limited service and extended
stay hotels less than 20 years old
Balanced business sources, no resorts or leisure hotels |
Same |
Branded full service, limited service and extended stay hotels
less than 20 years old (will consider B assets) |
|
Management |
Seek experienced national and regional mgmt companies |
Same |
Same |
|
Borrower |
Experienced in the lodging industry and possesses a track record
with the product type & has significant financial strength
|
Same |
Same |
|
Geography |
Major MSA’s – urban infill locations with constraints to future
supply |
Same |
Top 50 MSA’s but non-institutional locations and/or submarkets
may be considered |
