| Property Types: |
Multifamily, MHP, Student Housing, Office, Industrial, Retail |
| Investment Amounts: |
$1MM-$10MM |
| Investment Terms: |
Typically up to 5yrs |
| Control Rights: |
Terrace capital or assigns is granted an accelerated means to assume control of borrowing entity in the event of default by co-owner.
Equity interest is typically secured by prorata interest in general and limited partnerships that comprise property ownership. |
| DSCR: |
1.25X |
| Maximum LTV: |
90% (Sponsor must contribute a minimum of 10% hard equity) |
| Rate: |
Typically priced with a target IRR which is realized through a combination of origination fees, a preferred pay rate, and a "lookback" payment due upon sale or refinance. |
| Acknowledgement: |
First mortgage lender required to acknowledge Terrace Capital's equity position.
Co-Owner has recourse obligation for 1st mortgage assumption fees. |
| Geographic Location: |
Primary and Secondary markets preferred. (Nationally) |
| Closing: |
Borrowing Entity- Single Purpose Entity required
Prepayment- open
Escrows- Required for Taxes and Insurance |
| Third Party Reports: |
PCA- Property Condition Report
Phase I- Environmental
MAI Appraisal |
| Application Fee: |
None |
