Debt consists of a $31,300,000 fixed-rate loan at 4.5% for a 9-year term. Leverage is 50.52% LTV, and the initial debt service coverage ratio is 1.03x.
Leverage profile
Loan amount$31.30M50.5% of offering · 50.52% LTV
Offering equity$30.66M49.5% of offering
Loan Amount
$31,300,000
Term
Loan Term 9 Years
Interest Rate
4.5%
Fixed / Variable
Fixed
Prepayment Penalty
—
DSCR
1.03x
Acquisition LTV
50.52%
Offering LTV
50.52%
Strengths
- Fixed 4.5% interest rate protects cash flow from floating benchmarks.
- Moderate leverage at 50.52% LTV.
Concerns
- Constrained DSCR of 1.03x provides thin margin for error.
- 9-year balloon repayment requires refinancing execution.