RETAIL PROPERTIES

Underwriting Parameters

Term:

10 Year Fixed Rate Loan Term.

Amortization:

30 Year Amortization

Loan to Value

85% Maximum

Debt Service:

1.20 Minimum

Preferred Properties:

Age & Condition:

20 years old or less. Older properties with material renovations are acceptable. Regardless of age, all properties should be in average to good condition.
 

Construction:

Pitched roofs with masonry or wood construction on garden type buildings and separately metered units.
 

Leasing:

Lease expirations should not exceed 25% in any one year with the predominance of leases being triple net or providing for protection against increases in operating expenses.
 

Tenancy:

Anchored with more than 40% of the remaining space being occupied by a national or regional good quality tenants or unanchored with more than 50% of the space occupied by national or regional good quality tenants. All tenants should be complementary in use, with minimal or no overlap in product types. Centers with specialty tenants (government, church office, or non-profits) health clubs, restaurants, theaters, and furniture stores will be subject to specific underwriting considerations. Centers with limited access establishments (men only, adults only, etc.) are generally not acceptable.
 

Parking:

One space per 250 square feet: and parking should be in proportion with competitive properties.
 
 

Location:

Near employment centers and supporting retail uses as well as having good access and visibility from a main road.
 

Market:

Should be stable or exhibit positive economic and demographic indicators.