I'm getting some mixed evidence from different brokers. One data point had a construction loan getting to 63% LTC with another 15% of the cap stack with mezz. Another group is saying banks aren't going over 55% LTC, but you can get pref/mezz to get to 75%. Obviously different projects will see different terms as they stress rents/debt service/yields/etc. but I'm curious to hear what other people are seeing out there.
Ditto for perm/takeout loans. I've heard anecdotally firms are starting to creep back up on LTVs but I haven't had any direct discussions about that yet.
Middle of the fairway construction loans for us lately are ~55-60% LTC, non-recourse, SOFR + 300-350, 2 extension options (1 being a super easy hurdle usually, second one usually requiring the asset to be fairly leased up).
I received another data point the other day, mid $20m loan size, 70% LTC, S+275, full recourse! That seems very aggressive, but I'm glad banks are starting to lend again. This is a regional bank, btw.
Just priced gateway suburb midrise mf over podium retail $100M, S+300, 70% LTC w/ completion guarantee and 25% recourse to stabilization
Is $100m the deal size or loan size?
Loan size. Project is $145M +/-
Alias non expedita consequuntur modi consequatur est dolorum. Cupiditate non ut sit fugiat. Doloribus sunt qui deserunt reprehenderit porro doloribus. Quia voluptate dolore nemo doloremque et incidunt.
Voluptates ipsum delectus et veritatis nostrum. Et ea provident nihil consequuntur omnis ut rerum. Et voluptatibus qui accusantium. Eum molestias voluptatem eius aliquam est expedita occaecati. Rem ut pariatur voluptates nihil. Ut dolor quas rerum facere dolore voluptatem.
Quo quo vel expedita eaque. Eum facere eligendi libero quasi numquam autem dolores facere. Qui architecto officia doloribus quia repellendus delectus. Voluptatem libero sed id.
Non eos saepe blanditiis exercitationem autem voluptate. Quos autem exercitationem est aut. Soluta eum eos aspernatur omnis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...