- “One-Stop Shop” if you are looking for FHA or Agency permanent debt but need short-term bridge financing
- Fast closing to facilitate purchase or maturing existing debt
- No exit fee if permanent financing originated via Greystone
- Savings on fees and closing expenses
This program is specifically designed for properties that are either stabilized or are in need of minor to moderate renovation or other value-add strategy. Our bridge loan program can be used to finance stabilized properties while Greystone underwrites the permanent financing or fund moderate rehabilitation or retenanting where the Borrower requires to complete a value-add strategy before securing permanent financing through an FHA, Fannie Mae, and Freddie Mac execution.
Independent living, assisted living, memory care and skilled nursing properties
$5 million to $75 million (larger upon request)
Generally, loans with terms up to 36 months (including extensions).
Interest generally at a floating rate, specified as a competitive market rate spread over a LIBOR floor
Interest Rate Management
Borrower shall purchase an interest rate cap for the duration of the initial loan term at strike rate to be determined during due diligence. Counterparty must be rated A2/A.
Interest-only (some amortization may be required after first two years of term).
Loan Commitment Fees
Loan to Cost
Greystone typically requires at least 10.0% to 20.0% cash equity in the property.
Debt Coverage Ratio
Minimum of 1.10x at closing. Where coverage is anticipated to be less than 1.25x at the initial rate, Greystone will establish an interest reserve. During the bridge loan term, a minimum of 1.40x must be achieved. Particular attention will be paid to the anticipated DCR on the take-out loan. In general (and in particularly for rehab or repositioning loans), Greystone’s underwriting must demonstrate that the loan can be refinanced upon stabilization.
Prepayment/ Exit Fees
Generally, the loan will be open to prepayment after six months subject to the payment of an exit fee. The exit fee shall be waived if Greystone provides permanent financing.
Application Fees/ Deposits
$15,000 per property non-refundable processing fee (fee depends on loan size and complexity) plus approximately $25,000 per property escrow deposit to cover the cost of the appraisal, structural/engineering, and environmental reports, travel and due diligence. A separate legal deposit will be collected upon engaging counsel.
Taxes, Insurance and Replacement Reserves
Third Party Reports
MAI Appraisal (expanded or separate market study may be required for properties with a value-add component); Environment Phase I and Engineering/Structural Report prepared by approved professionals
Typically non-recourse with standard carve-outs for environmental, bankruptcy, fraud and misapplication of funds, etc.; Partial recourse and/or operating deficit and completion guaranty may be required for properties undergoing more significant renovation.