The property is leveraged at a 39.8% offering LTV with variable rate financing at 5.25%. The loan features an initial 2-year maturity to May 9, 2028, and three 1-year automatic extension options.
Leverage profile
All-cash offering — no mortgage debt, so there is no leverage to chart.
Loan Amount
—
Term
Initial 2-year term maturing May 9, 2028, with three automatic one-year extensions, subject to certain terms and conditions of the Loan remaining satisfied, providing an ultimate 5-year term maturing on the Maturity Date.
Interest Rate
5.25%
Fixed / Variable
Variable
Prepayment Penalty
May prepay the Loan in full, but not in part, on any business day upon the conditions stated in the Loan Documents, including giving the Lender not less than ten business days prior written notice
DSCR
—
Acquisition LTV
—
Offering LTV
39.8%
Strengths
- Low 39.8% offering LTV
- Prepayment allowed in full with 10 business days notice
Concerns
- Variable interest rate structure at 5.25%
- Short initial 2-year loan maturity term