LARGE BALANCE CONSTRUCTION LOANS
LARGE BALANCE CONSTRUCTION LOANS FOR REAL ESTATE DEVELOPERS
When you need financing for new construction – with an eye towards long-term ownership – Stone Oak Capital Group offers multifamily investors short-term, floating-rate financing to be matched with our existing suite of financing products and programs.
All sponsors benefit from the highest level of partnership and customer service along the life cycle of their loans. Stone Oak Capital Group offers Fannie Mae, Freddie Mac, FHA, Bridge, Non-Agency and CMBS permanent financing, ensuring a smooth loan transition all with one lender. Stone Oak Capital Group offers a complimentary loan program to our existing product lines to give borrowers added flexibility and financing options for their market-rate properties.
Asset Type
Vertical/Garden-Style ground-up Multifamily with Agency-qualifying characteristics
Asset Disqualification
Skilled Nursing, Condo/For-Sale, and Ground Lease Properties
Mixed-Use/Non-Resi Component
To be considered on a deal-by-deal basis subject to the credit and quality of the source of the non-residential revenue, subject to Agency-qualifying parameters
Sponsorship
Established track record of constructing, owning, and managing multifamily assets with appropriate net worth and liquidity commensurate with the Loan's credit profile
Minimum Loan Amount
$10M
Maximum Loan Amount
$250M
Expected Completion
No later than 36 months
Security
1st Mortgage lien on the subject property
Exit Underwriting
To Agency-qualifying parameters
Maximum Loan-to-Cost
80.0% (subject to ABR-accepted/approved construction costs)
Minimum U/W Debt Yield*
8.0% (given current market constants)
Minimum U/W DSCR*
1.20x
Maximum U/W LTV*
65.0%
Recourse
Generally, non-recourse with standard carve-outs
Prepayment
Generally permitted
Benchmark Rate
1 Month CME Term SOFR (subject to benchmark floor)
Spread (per annum)^
3.50%-6.00%
Interest Rate Protection / Rate Cap
Required
Amortization
None, Interest-Only
Commitment Fee
No less than 1.00%
Exit Fee
No less than 2.00%
Asset Management Fee
$3,000 per month
Initial Loan Term
Up to 48 months, subject to the anticipated/proforma completion date
Extension Option(s)
Available, if warranted/applicable based on Loan's credit profile
Reserves & Escrows
Debt Service, RE Taxes & Insurance after receipt of TCO
Recourse/Guarantees
Standard Non-Recourse Carveouts, Completion, Interest & Carry & Environmental Guarantees
Cash Management
In-place 90 days prior to receipt of TCO
Lockout/Prepayment
No sooner than 12 months after closing of the Loan
Subordinate Financing
Mezzanine, Preferred Equity, or C-Pace Financing prohibited
Equity & Loan Funding
Proceeds from Loan to be advanced after required equity has been invested
Minimum Occupancy
12 months after receipt of TCO
Minimum LTV
12 months after receipt of TCO (via 3rd Party reappraisal)
Construction Commencement
No later than 90 days after closing of the loan
Construction Loan Initial Funding
No later than 90 days after closing of the loan, with consideration of an unused fee for a longer proforma initial loan funding
% of Cost Buyouts
No less than 70% of construction costs (inclusive of materials) must be bought-out prior to loan funding. The GMP contract shall exclude material escalation clauses, and allowances shall be within industry norms as approved by Lender
Land Cost Basis
To be considered on a deal-by-deal basis
ROFR/ROFO & Exclusivity
ABR to retain ROFO/ROFR on any takeout financing of the subject loan and have exclusivity during the loan underwriting, diligence & closing periods
Ground Lease / Leasehold Interest
Prohibited
CONTACT STONE OAK CAPITAL GROUP FOR YOUR PRIVATE CONSTURCTION LOANS!
If you’re a serious investor looking to achieve your real estate goals of impacting the real estate market. Give us a call to close your next deal!