The acquisition is financed at a 50.34% offering LTV with a fixed interest rate of 4.2%. The debt encumbrance includes a Prepayment Premium definition under the loan documents.
Leverage profile
All-cash offering — no mortgage debt, so there is no leverage to chart.
Loan Amount
—
Term
—
Interest Rate
4.2%
Fixed / Variable
Fixed
Prepayment Penalty
A Prepayment Premium (as defined in the Loan Documents)
DSCR
—
Acquisition LTV
—
Offering LTV
50.34%
Strengths
- Fixed interest rate of 4.2%
- Moderate leverage at 50.34% LTV
Concerns
- Subject to a Prepayment Premium
- Finance expenses total $1,347,840