Non-recourse, assumable subordinate financing for the acquisition or refinance of stabilized multifamily, retail, office, hotel, industrial, and self-storage properties financed simultaneously with Greystone CMBS mortgage loans.
5 and 10 year terms available. Term must be the same as the first mortgage
Loan to Value Maximum
75-85% of appraised value or purchase price depending on asset type
Interest-only or consistent with the senior mortgage loan
Domestic single asset borrowing entity is required
Pledge of the equity of the first mortgage borrower, secured by UCC filing. Eagle 9 title policy is required
12-15% coupon varying with LTV, DSCR, market and sponsor
Defeasance with a lockout period of 24 months from securitization. Cannot be prepaid before A Note
Third Party Reports
MAI Appraisal, Property Condition Report and Environmental Phase I Assessment are required; Seismic Reports are required for properties in Seismic Zones 3 and 4. Mezzanine loan will rely on senior mortgage loan Third Party Reports.
Generally limited to reserves stated in the senior loan agreement, unless specifically stated otherwise
Standard mezzanine cash management
45 - 60 days from application to funding; dependent on third party report timing and borrower’s submission of due diligence. Mezzanine closing simultaneous with mortgage
Loan is assumable, subject to lender approval of proposed replacement borrower; Fees include 1% assumption fee and Lender’s reasonable out-of-pocket expenses