Commercial Construction Loans

OUR COMMERCIAL REAL ESTATE PRODUCTS

SMALL BALANCE MULTIFAMILY/MIXED USE LOANS

Mixed Use properties must derive at least 80% of gross income from multifamily component
Properties must have in-place cash flow at closing, no heavy rehab or ground up construction
Fully funded at closing, including reserves and holdbacks in escrow (if required)

LENDING MATRIX

LENDING CRITERIA SMALL BALANCE MULTIFAMILY
Loan Size $500K – $10MM
Maximun Loan to Cost Up to 80% Purchase/100% Rehab
Maximum Stabilized LTV 75%
Reserves (if required) Interest/Tax/Insurance/TILC/Capex
Typical Loan Term 12-24 months
Loan Rate Fixed/Starting at 8.0%
Typical Origination/Exit Fees 1.0%/1.0%
Prepayment Open Prepay with Minimum Interest
Loan Guaranty Full Recourse
Minimum Guarantor FICO 640
Minimum Guarantor Liquidity/Net Worth 15%/100% of Loan Size
Guarantor Bankruptcy/Foreclosures None in last 5 Years

COMMERCIAL CONSTRUCTION LOANS

Ground-up construction or retrofit of existing structures
Minimum 10-year NNN lease executed pre-close
All direct project costs including land and soft costs included
Single tenant projects with strong credit preferred
Only strong national credit tenants considered for multi tenant projects

LENDING MATRIX

LENDING CRITERIA TERMS
Loan Size $2-$40MM
Maximum Loan to Project Cost (incl. Financing) 80%-100%
Maximum Stabilized LTV 75%
Reserves (as required) Interest/Tax/Insurance/Construction
Loan Term 12-36 months
Loan Rate Index 1 Month LIBOR
Loan Rate Spread over Index 5.0%+
Typical Origination/Exit Fees 1.0%/1.0%
Prepayment Open Prepay with Minimum Interest
Loan Guaranty Non Recourse with Completion Guaranty. Surety Bond may be required
Minimum Guarantor FICO 640
Minimum Guarantor Liquidity/Net Worth 15%/100% of Loan Size
Guarantor Bankruptcy/Foreclosures None in last 5 Years

COMMERCIAL REAL ESTATE BRIDGE LOANS

TRANSITIONAL BRIDGE

Properties must have in-place cash flow and minimal capex requirements

VALUE ADD BRIDGE

Properties requiring light or heavy renovation, partial or non-cash flowing
Vacant properties requiring heavy rehab eligible for strong sponsors
No ground up construction projects
Non-interest bearing future funding facilities available

TYPICAL TERMS

LENDING CRITERIA TRANSITIONAL BRIDGE VALUE ADD BRIDGE
Loan Size $2-20mm $2-20mm
Property Types Office/Retail/Mixed Use/Industrial/Self Storage/Hospitality Office/Retail/Mixed Use/Industrial/Self Storage/Hospitality
Maximum Loan to Project Cost (incl. Financing) 80% 80%
Max Stabilized LTV 70% 70%
Reserves (as required) Interest/Tax/Insurance/TILC/Capex Interest/Tax/Insurance/TILC/Capex
Loan Term 12-36 months 12-36 months
Loan Rate Index 1 Month LIBOR 1 Month LIBOR
Loan Rate Spread over Index 4.0 –6.0% 6.0%+
Typical Origination/Exit Fees 1.0%/1.0% 1.0%/1.0%
Prepayment Open Prepay with Minimum Interest Open Prepay with Minimum Interest
Loan Guaranty Non-recourse, with standard bad boy carveouts Typically Full Recourse. Non-recourse on case-by-case basis
Minimum Guarantor FICO 640 640
Minimum Guarantor Liquidity/Net Worth 15%/100% of Loan Size 15%/100% of Loan Size
Guarantor Bankruptcy/Foreclosures None in last 5 Years None in last 5 Years

MULTIFAMILY ACQUISITION & REHAB LOANS

TRANSITIONAL MULTIFAMILY

Properties must have in-place cash flow and minimal capex requirements

VALUE ADD MULTIFAMILY

Properties requiring light or heavy renovation, partial or non-cash flowing
Vacant properties requiring heavy rehab eligible for strong sponsors
No ground up construction projects
Non-interest bearing future funding facilities available

TYPICAL TERMS

LENDING CRITERIA TRANSITIONAL BRIDGE VALUE ADD BRIDGE
Loan Size $2-40mm $2-40mm
Maximum Loan to Project Cost (incl. Financing) 85% 80%
Max Stabilized LTV 75% 75%
Reserves (as required) Interest/Tax/Insurance/TILC/Capex Interest/Tax/Insurance/TILC/Capex
Loan Term 12-36 months 12-36 months
Loan Rate Index 1 Month LIBOR 1 Month LIBOR
Loan Rate Spread over Index 3.5 –5.5% 5.5%+
Typical Origination/Exit Fees 1.0%/1.0% 1.0%/1.0%
Prepayment Open Prepay with Minimum Interest Open Prepay with Minimum Interest
Loan Guaranty Non-recourse, with standard bad boy carveouts Typically Full Recourse. Non-recourse on case-by-case basis
Minimum Guarantor FICO 640 640
Minimum Guarantor Liquidity/Net Worth 15%/100% of Loan Size 15%/100% of Loan Size
Guarantor Bankruptcy/Foreclosures None in last 5 Years None in last 5 Years

Retail Construction Development

Express Capital Financing has funded several projects since the recent launch of its build-to-suit commercial lending program. ECF is looking to identify and build strategic partnerships across all areas of the build-to-suit business; including with landlords, developers, franchise industry players, strong credit tenants with expanding real estate needs and with institutional investors that seek stable low duration assets with strong cash flow and low-risk exit profiles.

LENDING MATRIX

Loan Type Ground-up construction or retrofit of existing structures
Minimum 10-year NNN lease executed pre-close
All direct project costs including land and soft costs included
Single tenant projects with strong credit preferred
Only strong national credit tenants considered for multi tenant projects
Loan Amount $2,000,000 to $100,000,000
Maximum Loan to Project Cost (incl. Financing) 80%-100%
Maximum Stabilized LTV 75%
Reserves (as required) Interest/Tax/Insurance/Construction
Loan Term 12-36 months
Typical Origination/Exit Fees 2%+
Prepayment Open Prepay with Minimum Interest
Loan Guaranty
  • Non Recourse with Completion Guaranty. Surety Bond may be required
Minimum Guarantor FICO 640
Minimum Guarantor Liquidity/Net Worth 15%/100% of Loan Size
Guarantor Bankruptcy/Foreclosures None in last 5 Years