Financing consists of a $56,650,000 10-year fixed-rate loan at 4.81% with an initial DSCR of 1.8x and a 46.17% LTV. The loan carries a yield maintenance prepayment penalty with a 1.0% floor for the first 9.5 years, transitioning to a 1.0% premium until 90 days prior to maturity.
Leverage profile
$56,650,000
10-year Term
4.81%
Fixed
The Loan is pre-payable in full, subject to a yield maintenance calculation (with a floor of 1.0% of the then principal balance of the Loan) if the Loan is prepaid during the first 9.5 years of the term of the Loan. In addition, if prepayment is made after the expiration of such yield maintenance period but before the last calendar day of the fourth month prior to the month in which the loan matures, then the prepayment premium will be 1.0% of the amount of principal being prepaid. No prepayment premium is required during the 90-day period directly prior to maturity of the Loan. No voluntary partial prepayment is permitted.
1.8x
46.17%
46.17%
Strengths
- 10-year fixed interest rate of 4.81% secures long-term cost of capital.
- Low leverage profile with an acquisition and offering LTV of 46.17% and 1.8x DSCR.
Concerns
- Prepayment penalty requires yield maintenance with a 1.0% floor for the first 9.5 years.
- Total financing and loan origination fees equal $3,190,973.