Eligible Property Types:
Where the principle structure is designed for manufacturing processes, heavy assembly or involves the use of heavy machinery. It contains an average amount of office space commensurate with the quality of the building and the intended use.
Loan Size:
$150,000 - $2,000,000
Eligible Locations:
Nationwide
Loan Term Amortization:
25 years
Collateral:
First position mortgage as certified by title search and title policy on property. Collateral assignment required, subordination of tenant leases may be required.
Loan Pricing:
Determined by pricing matrix.
Debt Service Coverage Ratio:
Minimum DSCR of 1:1 depending upon property type, age, physical condition, location, and competitive market position.
Loan-to-Value Ratio:
Up to 70% of MAI appraised value conforming to FIRREA.
Cash Out Refinance:
Borrower must justify proceeds to be used for business purposes only. Minimum 2 years ownership; maximum LTV 80%.
Loan Escrows:
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.
Appraisal:
Complete Summary Appraisal required.
Environmental Insurance/Screen or Phase 1:
Required.
Survey:
No survey required if title company agrees to delete the standard exceptions from the title policy.
Reserves at Closing:
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.
Eligible Principals:
U.S. citizens, permanent resident aliens, non-permanent resident aliens (with restrictions); majority principal owners cannot be on probation or parole.
Recourse:
Must be personally guaranteed by all 20% or greater owners of real estate or operating entity.
