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Arbor Private Label
Arbor offers a complimentary loan program to our existing product lines to give borrowers added flexibility and financing options for their market-rate properties.
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Arbor Private Label Loan Program Term Sheet
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LOAN AMOUNT
$4 million minimum
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LOAN TERM
5-, 7- and 10-year options
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AMORTIZATION
30 years; interest-only periods can range from zero to ten years, determined by leverage, debt yield, market and overall credit quality
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MINIMUM DSCR
1.25x
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MAXIMUM LTV
75% (amortizing); 65% (full-term interest-only)
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MINIMUM DEBT YIELD
7%; exceptions considered on a case-by-case basis
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INTEREST RATE
Fixed rate over the greater of the 10-year Treasury rate or 10-year swap rate; spread varies based on risk and terms
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ORIGINATION FEE
Minimum of 0.25%
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CASH MANAGEMENT
Springing Lockbox upon EOD
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SUBORDINATE DEBT
Mezzanine debt available on a case-by-case basis; program can also allow for future mezzanine debt
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BORROWER/SPONSORSHIP
Borrower must be a newly formed, single-purpose, bankruptcy-remote Delaware LLC. Sponsor must have an established track record, appropriate net worth and liquidity commensurate with transaction; normal expectations are a minimum net worth equal to the loan amount and liquidity of no less than 10% of the loan amount
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MINIMUM OCCUPANCY
85%
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COLLATERAL TYPES
Conventional multifamily
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TAX AND INSURANCE ESCROWS
Monthly deposits required
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REPLACEMENT RESERVES
Monthly deposits required
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RECOURSE
Generally nonrecourse with standard carve-outs
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PREPAYMENT
Defeasance; open during last three months of loan term
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EARLY RATE LOCK
Available on a case-by-case basis
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ASSUMPTIONS AND TRANSFERS
One-time assumption, subject to lender approval and payment of 1% fee
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