Unflagged,
Economy, Limited and Midscale franchises preferred. Full service
properties will be considered on a case by case basis.
$150,000 - $10,000,000
Nationwide
20-25 years depending on property type
First
position mortgage as certified by title search and title policy on
property. Must have a first security interest under UCC-1 on all
business assets of real estate and operating entities.
Determined by pricing matrix.
Debt Service Coverage Ratio:
Minimum DSCR of 1.30x:1.00x depending upon property type, age, physical condition, location, and competitive market position.
The lesser of up to 65% (Branded) or up to 80% (Non-branded) of MAI appraised value conforming to FIRREA.
Minimum
2 years ownership; maximum LTV 65%. If owners can justify that proceeds
to be used for business purposes, maximum LTV is 80%.
The
borrower may be required to contribute monthly to an escrow account for
real estate taxes and property insurance. The borrower may also be
required to establish a monthly capital replacement escrow reserve
equal to the greater of (a) 5% of gross revenues or (b) an amount to be
determined by Ocean Capital on the basis of an engineering report and
site inspection.
Complete Summary Appraisal required.
Environmental Insurance/Screen or Phase 1:
Required.
Updated survey required unless title company agrees to delete the standard exceptions from the title policy.
The
borrower shall establish a remediation/repair reserve at closing equal
to 125% of required deferred maintenance repairs as indicated in the
environmental and architectural/engineering reports.
U.S.
citizens, permanent resident aliens, non-permanent resident aliens
(with restrictions); majority principal owners cannot be on probation
or parole.
Must be personally guaranteed by all 20% or greater owners of real estate or operating entity.
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