Sources of Financing

The Bank (205-327-3516) is offering retail financing for new construction or existing centers with a preleasing requirement of 50% on credit anchored centers generating a debt service coverage of .75x. The minimum preleasing requirement is 75% on noncredit tenant shadow anchored centers generating a breakeven coverage and the minimum stabilized debt service coverage is 1.05x on freestanding credit requests based on a maximum 25-year amortization. The Bank’s program has minimum blended stabilized debt service coverage of 1.15x on credit anchored centers based on a maximum 25-year coverage. Also included in the plan is a minimum stabilized debt service coverage of 1.25x on noncredit shadow anchored centers with a maximum 20-year amortization and minimum equity of 5% on freestanding credit tenants 10% on credit anchored centers and 20% on noncredit centers. The loan has a maximum term of five years and LIBOR-based pricing.

Martin Capital Group (270-354-6394) has a $30 million pool available to fund Walgreens deals. The leases must be absolute NNN leases with no landlord obligations for completed projects. The loans are locked at application at a 7.55% fixed rate 20/20 or a 7.65% fixed rate 25/25 with 20 to 25 year term/amortization. The funding must be completed by December 20 2001. Underwriting terms include 1.01x DSCR minimum a 0% vacancy allowance 0% management fee 100% LTV maximum and no reserves. In addition the company is offering loans from $1 million to $50 million at a rate of 6%. The fixed rate non-recourse loans are being offered on income producing retail properties for terms of 5 7 10 15 and 20 years. Most transactions have a 20 to 30-year amortization period and self-amortizing loans are available. LTV is subject to underwriting criteria and up to 80% LTV is available. Minimum debt coverage of 1.20x to 1.30 is available depending on property type the loan fee is .5% to 1% and liability is nonrecourse. The loans are assumable and there is a 1% transfer fee.