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 +/-
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