Liberty Lending, LLC

small logo

 

Commercial Programs Commercial Building

 

Liberty Lending Direct, a business unit of Liberty Lending, provides commercial real estate financing in all 50 states for retail, multifamily, office, industrial, hospitality, manufactured housing, and self-storage starting at US $1 million and up. In order to meet the broad needs of the commercial real estate community, our financing options include permanent fixed rate loans, short term floating rate loans, credit tenant lease loans and mezzanine financing. Liberty Lending Direct is a consistent leader in commercial loan organizations. For loan programs less than $1 million and over $500,000, please click here.
 

 
Fixed Rate Mortgage Program

Property Types
Multifamily, Retail, Office, Industrial and Manufactured Housing.

Loan Parameters

Loan Size
All loan sizes accepted with loans below US$1 million considered on a case-by-case basis.

Loan Term
Loan maturities are typically 5, 7, or 10 years. Other loan terms will be considered on a case-by-case basis, including 15 and 20 year maturities.

Loan Amortization
Up to 30-year amortization. Interest only periods available on a case-by-case basis.

Prepayment
Prepayment of the loan is generally prohibited until the earlier of four years after closing or two years after securitization of the loan. Thereafter, the Borrower may defease the loan. Loan open to prepayment without penalty, in full only, during the last three months of the loan term.

Assumption/Transfer
After nine months following the loan closing, Lender will not unreasonably withhold its consent to transfers of the mortgaged property and assumptions of the loan if, among other things, the proposed transferee in each instance is deemed creditworthy and conforms to all requirements under the loan documents and borrower pays an assumption fee of 1% per transfer and all of Lender's related expenses.

Operating History
Three full years of operating history is desired. The property should be established in the market and have stable occupancy history. The property should not have experienced material declines in operating performance over the most recent periods. Newly constructed or recently rehabilitated properties that have not reached stabilized occupancy will be considered on a case-by-case basis.

Secondary Financing
Permitted on a case-by-case basis.

Recourse/Exculpation
Non-recourse, except with respect to environmental matters and Lender's standard carve-outs.

Reserves
Reserves will be established for payment of taxes and insurance, remediation of deferred maintenance, ongoing capital improvements and costs of tenant improvements and leasing commissions, where applicable.
 
back to top
 
 
Multifamily Bridge Program

Property Types
Class 'B' or better multifamily apartment projects. Student housing and military impacted properties are also eligible for this program.

Loan Parameters

Loan Term:
Two years with a one-year extension option available provided certain conditions are satisfied. In certain instances an extension fee may be applicable.

Loan Amortization
Loan payments are interest only throughout the loan term.

Debt Service Coverage Ratio (DSCR)
Minimum as-stabilized DSCR of 1.20:1 (based on interest rate cap) depending upon property type, age, physical condition, location and competitive market position.

Loan-to-Value Ratio
The lesser of i) up to 80% of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) up to 95% of loan to acquisition cost, if applicable.

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of i) US$200/unit per year or ii) an amount determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances. Additional reserves may be required for debt service shortfalls and/or for the costs of outstanding rehabilitation or other improvements.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report or Lender's site inspection.

 
back to top
 
 
Retail Bridge Program

Property Types
Anchored, shadow-anchored and unanchored shopping centers, lifestyle centers, power centers and outlet centers. Single tenant retail properties will be considered on a case-by-case basis.

Loan Parameters

Loan Term
Two years with a one-year extension option available provided certain conditions are satisfied. In certain instances an extension fee may be applicable.

Loan Amortization
Loan payments are interest only throughout the loan term.

Debt Service Coverage Ratio (DSCR)
Minimum as-stabilized DSCR of 1.20:1 (anchored) or 1.25:1 (unanchored) based on interest rate cap. Asset qualities such as age, physical condition, tenant mix and competitive market position are significant considerations in determining the applicable DSCR.

Loan-to-Value Ratio
The lesser of i) up to 75% (unanchored) or 80% (anchored, shadowanchored) of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) up to 95% (anchored, shadow anchored) or 85% (unanchored) of loan to acquisition cost (if applicable).

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly rollover reserve escrow for costs of tenant improvements and leasing commissions and a monthly capital replacement escrow reserve equal to the greater of i) US$.15/square foot per year or ii) an amount determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances. Additional reserves may be required for debt service shortfalls and/or for the costs of outstanding rehabilitation or other improvements.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report or Lender's site inspection.
 
back to top
 
 
Office Bridge Program

Property Types
Class 'B' or better suburban and urban office buildings, professional and medical office buildings. Single tenant office properties will be considered on a case-by-case basis.

Loan Parameters

Loan Term
Two years with a one-year extension option available provided certain conditions are satisfied. In certain instances an extension fee may be applicable.

Loan Amortization
Loan payments are interest only throughout the loan term.

Debt Service Coverage Ratio (DSCR)
Minimum as-stabilized DSCR of 1.25:1 (based on interest rate cap). Asset qualities such as age, physical condition, tenant mix and competitive market position are significant considerations in determining the applicable DSCR.

Loan-to-Value Ratio
The lesser of i) up to 80% of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) 95% of loan to acquisition cost (if applicable).

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly rollover reserve escrow for costs of tenant improvements and leasing commissions and a monthly capital replacement escrow reserve equal to the greater of i) US$.20/square foot per year or ii) an amount to be determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances. Additional reserves may be required for debt service shortfalls and/or for the costs of outstanding rehabilitation or other improvements.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report or Lender's site inspection.
 
back to top
 
 
Industrial Mortgage Program

Eligible Property Types
Light industrial, warehouse and distribution facilities, "flex" buildings, storage facilities and research and development properties. Single tenant industrial properties with long-term leases will be considered.

Loan Parameters

Loan Term
Loan maturities are typically 5, 7 or 10 years. Other loan terms will be considered on a case-by-case basis, including 15 and 20 year maturities.

Loan Amortization
Up to a 30-year amortization. Interest only periods available on a case-by-case basis.

Debt Service Coverage Ratio (DSCR)
Minimum DSCR depending upon property type, age, physical condition, location and competitive market position. Minimum DSCR requirements are 1.20:1 for light industrial, warehouse and distribution facilities; and 1.25:1 for "flex" buildings and research and development properties.

Loan-to-Value Ratio
The lesser of i) up to 80% of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) up to 95% of loan to acquisition cost (depending on property type). Flex space will be considered at up to 80% of appraised value or acquisition cost (if applicable).

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of i) US$.15/square foot per year or ii) an amount to be determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report and Lender's site inspection.
 
back to top
 
 
Hotel & Lodging Mortgage Program

Eligible Property Types
Full-Service, Limited-Service and Extended-Stay facilities with a minimum of 60 rooms.

Loan Parameters

Loan Term
Loan maturities are normally ten years. Other maturities will be considered on a case-by-case basis.

Loan Amortization
25-year amortization. 30 years will be considered on a case-by-case basis.

Debt Service Coverage Ratio (DSCR)
Minimum DSCR of 1.35:1 depending upon property type, age, physical condition, location and competitive market position.

Loan-to-Value Ratio
The lesser of i) up to 70% (Limited-Service) or up to 80% (Full-Service) of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) up to 75% (Limited-Service) or up to 85% (Full-Service) of loan to acquisition cost (if applicable).

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of i) 4% of gross revenues or ii) an amount to be determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances.

Franchise Fees
Minimum 3% of total revenues or 7% of room revenues.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report and Liberty Lending Direct's site inspection.
 
back to top
 
 
Manufactured Housing Mortgage Program

Eligible Property Types
Four and Five star manufactured housing (mobile home) parks with 50 or more pads.

Loan Parameters

Loan Term
Loan maturities are typically 5, 7, or 10 years. Other loan terms will be considered on a case-by-case basis, including 15 and 20 year maturities.

Loan Amortization
Up to 30-year amortization maturities. Properties built pre-1980 which have not been recently renovated may require a shorter amortization period. Interest only periods available on a case-by-case basis.

Debt Service Coverage Ratio (DSCR)
Minimum DSCR of 1.20:1 depending upon property type, age, physical condition, location and competitive market position.

Loan-to-Value Ratio
The lesser of i) up to 80% of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) up to 90% of loan to acquisition cost (if applicable).

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of i) US$50/pad per year or ii) an amount to be determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report and Liberty Lending Direct's site inspection.
 
back to top
 
 
Bridge Program 2-3 Year Floater

Property Types
Multifamily, Retail, Office. Industrial, Hotel, Mobile Home Parks, and other properties will be considered on a case-by-case.

Loan Parameters

Loan Size
All loan sizes accepted with loans below US$10 million considered on a case-by-case basis.

Loan Term
Two years with a one-year extension option available provided certain conditions are satisfied. In certain instances an extension fee may be applicable.

Loan Amortization
Loan payments are interest only throughout the loan term.

Advisory Fee
An Advisory Fee of 1% will be due upon issuance of a commitment.

Interest Rate Protection
Borrower is required to obtain a satisfactory interest rate cap for the loan from a satisfactory counter-party.

Prepayment
Prepayment of the loan is generally prohibited during Year 1. During years 2 and 3 (if extended), the loan may be prepaid upon payment of a 1% Exit Fee. If the loan is refinanced with Liberty Lending Direct, the Exit Fee will be waived.

Assumption/Transfer
Permitted only with the consent of Lender and upon payment of 1% assumption fee.

Property Characteristics
In addition to stabilized properties, Liberty Lending Direct will consider properties which are at transitional stages in their lifecycle including rehabilitation projects, properties in lease-up phase and properties with near-term prospects for increased cashflow.

Secondary Financing
Permitted on a case-by-case basis.

Recourse/Exculpation
Non-recourse, except with respect to environmental matters, Lender's standard carve-outs, completion of any outstanding rehabilitation work or other improvements (where applicable) and any operating deficits (if applicable).

Reserves
Reserves will be established for payment of taxes and insurance, remediation of deferred maintenance, ongoing capital improvements and costs of tenant improvements and leasing commissions (where applicable). Additional reserves may be required for debt service shortfalls and/or for the costs of outstanding rehabilitation or other improvements.
 
back to top
 
 
Multifamily Mortgage Program

Eligible Property Types
Class 'A', 'B', and 'C' multifamily apartment projects. Student housing and military impacted properties are also eligible for this program.

Loan Parameters

Loan Term
Loan maturities typically 5, 7, or 10 years. Other loan terms will be considered on a case-by-case basis, including 15 and 20 year maturities.

Loan Amortization
Up to a 30-year amortization. Interest only periods available on a case-by-case basis.

Debt Service Coverage Ratio (DSCR)
Minimum DSCR of 1.15:1 depending upon property type, age, physical condition, location and competitive market position.

Loan-to-Value Ratio
The lesser of i) up to 80% of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) up to 95% of loan to acquisition cost, if applicable.

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of i) US$200/unit per year or ii) an amount determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report and Lender's site inspection.
 
back to top
 
 
Office Mortgage Program

Eligible Property Types
Class 'A', 'B', and 'C' suburban and urban office buildings, professional and medical office buildings. Single tenant office properties with long term leases located in strong markets are also eligible for this program.

Loan Parameters

Loan Term
Loan maturities are typically 5, 7, or 10 years. Other loan terms will be considered on a case-by-case basis, including 15 and 20 year maturities.

Loan Amortization
Up to a 30-year amortization. Interest only periods available on a case-by-case basis.

Debt Service Coverage Ratio (DSCR)
Minimum DSCR 1.25:1. Asset qualities such as age, physical condition, tenant mix and competitive market position are significant considerations in determining the applicable DSCR.

Loan-to-Value Ratio
The lesser of i) up to 80% of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) 95% of loan to acquisition cost (if applicable).

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly rollover reserve escrow for costs of tenant improvements and leasing commissions and a monthly capital replacement escrow reserve equal to the greater of i) US$.20/square foot per year or ii) an amount to be determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report and Lender's site inspection and on a deal specific basis, reserves for tenant improvements and leasing commissions.
 
back to top
 
 
Retail Mortgage Program

Eligible Property Types
Anchored, shadow-anchored and unanchored shopping centers, lifestyle centers, power centers and outlet centers. Single tenant retail properties will be considered on a case-by-case basis.

Loan Parameters

Loan Term
Loan maturities are typically 5, 7, or 10 years. Other loan terms will be considered on a case-by-case basis, including 15 and 20 year maturities.

Loan Amortization
Anchored and shadow anchored centers up to a 30-year amortization schedule. Unanchored centers are typically underwritten with a 25-year amortization schedule. Longer amortization schedules for unanchored centers will be considered based upon property age and condition. Interest only periods available on a case-by-case basis.

Debt Service Coverage Ratio (DSCR)
Minimum DSCR depending upon property type, age, physical condition, location and competitive market position. Minimum DSCR: 1.20:1 anchored; 1.25:1 shadow-anchored and unanchored (DSCR may be adjusted depending upon the credit quality of the tenant base).

Loan-to-Value Ratio
The lesser of i) up to 75% (unanchored), 80% (anchored, shadowanchored) of MAI appraised value conforming to FIRREA and USPAP guidelines and ii) 95% (anchored, shadow anchored) of loan to acquisition cost (if applicable), up to 85% (unanchored).

Loan Escrows
The Borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The Borrower will usually also establish a monthly rollover reserve escrow for costs of tenant improvements and leasing commissions and a monthly capital replacement escrow reserve equal to the greater of i) US$.15/square foot per year or ii) an amount determined by Lender on the basis of an engineering report and Lender's site inspection. These reserves may be waived or capped in certain instances.

Reserves at Closing
The Borrower will establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the engineering report and Lender's site inspection and on a deal specific basis, reserves for tenant improvements and leasing commissions.
 
back to top
 
 
Investment Grade Net Lease Financing Program

Property Types
Retail, warehouse/distribution, corporate office, other property types considered on a case-by-case basis.

Loan Parameters

Product Description
The Mortgages are secured primarily by freestanding real estate tenanted by Investment Grade tenants.

Property Location
Throughout the United States.

Lease Type
NNN, NN and Bond leases.

Loan Size
US$3 million to US$100 million per location. Large assets and portfolios welcome.

Loan and Amortization Terms
Generally loans will be coterminous with the remaining lease term. Residual value insurance may be used to provide extended amortization beyond the lease term for BBB or better credits. Shorter term leases may be structured with longer amortization terms based on real estate analysis.

Pricing
Fixed rate based on credit quality at a spread over U.S. Treasuries.

Loan to Value
Up to 100%.

Debt Service Coverage Ratio
1.003:1 for tenants with NNN and Bond leases. 1.05:1 for NN leases.

Reserves
None for NNN and Bond Leases. A Replacement Reserve will be established for any Lease in which the Lessor is obligated to maintain the roof and structural components of the premises. Other reserves may be required in order to create a synthetically bondable lease.

Third Party Reports
MAI Appraisal, Structural and Phase 1 Environmental reports must be completed by Liberty Lending Direct approved consultants.

Insurance
Insurance to cover the risk of termination or abatement caused by events of casualty or condemnation will be required. Residual Value Insurance may also be required.
 
back to top
 

©2006 Liberty Lending, LLC    Fast Web Design by Advent Digital