Commercial Property Types

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Commercial Property Types

Commercial Property Types

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Apartment Loans
Retail Loan
Office Loan
Industrial Loan
Hospitality Loan
Senior Housing
Manufactured Housing
Self Storage
Corporate Real Estate

Apartment Loans
Eligible Properties:	Acquisition, Refinance and Repositioning of Garden-Style and High-Rise Multifamily/Condominium Properties are acceptable. Stabilized properties are defined by, the greater of 90% or sustaining occupancy. We will consider non-stabilized properties on a bridge/interim basis.
Eligible Property Locations:	Serving markets nationwide with stable current occupancy. Rent concessions will be subjected to standard underwritten and require higher coverage and reserves.
Loan Size:	$3 million - No maximum loan size and will also consider larger portfolio transactions with suitable project economics and sponsorship.
Debt Service Coverage:	1.20x for conduit and life company orograms and 1.25x for agency loans. Properties below 1.20x in need of repositioning and/or redevelopment will be considered using bridge/interim funding on an interest only or float-to-fixed basis.
Loan-to-Value Ratio:	1st Position: Up to 80% for Fannie Mae DUS, conduit and life company programs, and up to 90% on FHA insured loan program and interim facilities. Junior Position: We will consider properties that can accommodate secondary financing in the form of mezzanine debt or other structured finance options.
Loan Term:	Permanent Loan Terms: 3, 5, 7, 10, 15, 20, 30, and 35 years
Amortization:	30 years depending on age, quality of construction and market location.
Tenancy:	Leases should be 12 months at initial occupancy of a tenant. Consider corporate-type, short-term leases at initial occupancy of a tenant.
NOI Calculation:	Submission of three years of operating history. Underwrite rental revenues based on last three monthly rent rolls and trailing 12-month history. Other income, if sustained, on trailing twelve months basis. Vacancy Factor - the greater of 5% local market average or the actual property for the most recent 12-month period (including all forms of economic rent loss). Management Fee - The greater of 5% effective gross income, and the management contract fee rate or the industry average. Capital Reserves The range is $150 to $250 per unit, based on the final engineering report, physical inspection, tenancy and age of property.
Time Frames:	Term sheets within 36 hours, commitments within 30 days of application, closing within 60 days of commitment.
Fees:	Fees and deposits vary depending on the type of financing being requested and the overall strength of the sponsor and the project. In any event, no fees will be due prior to the issuance of a Loan Application.

Retail Loan
Eligible Properties:	Anchored or unanchored single-story retail centers. Property must generate strong sales with a good reputation in the market. Consider two-story centers, but typically will underwrite the second story with income limitations. BCF also finances net leased investments and/or free-standing stores based upon the credit of the tenant. We normally require current minimum economic occupancy of 85% for permanent financing. Non-stabilized properties should inquire about bridge or interim financing. Prefer credit tenants with greater than five years remaining on the lease term.
Eligible Property Locations:	Serving markets nationwide; the property requires direct access to major roadways and high visibility. Prefer infill locations in developed neighborhoods. Unanchored centers should be located in high traffic areas. Where direct competition exists, the property should have strong market appeal and a history of retaining its tenancy, sales volume and competitiveness.
Loan Types:	Permanent financing for acquisition, refinance and repositioning
Loan Size:	$3 million - $50 million; will also consider larger portfolio transactions.
Debt Service Coverage:	Generally, 1.20x to 1.30x, depending on the quality of the market location, the property and the existence and quality of anchor tenants.
Loan-to-Value Ratio:	Up to 85% maximum LTV in first position for permanent financing. Higher leveraged requirements should inquire about mezzanine debt options.
Loan Term:	3, 5, 7, 10, 15, 20, 25 and 30 year terms available for permanent financing.
Amortization:	30 years, depending on major lease terms and expiration, and property age.
Interest Rates:	Pricing is based upon the quality of the real estate and the credit strength of the borrower/project. We offer LIBOR and Treasury based pricing. Treasury spreads run between 100 -250 basis points over the corresponding US Treasury for permanent loans. Swaps are quoted on a project specific basis.
Fees:	No fees or deposits are required until you accept letter of interest LOI. A standard application fee will be required to cover standard third party costs (legal, appraisal, environmental, seismic, engineering, etc.) A good faith deposit may be required depending on the quality of the project and sponsorship.
Anchored / Unanchored:	Accepted anchors include drug stores, discount department stores, dry goods, retail and home improvement stores. Financially stable national, regional or local chains are desired. Anchor tenant leases should have at least five years remaining on their leases, as of the date of closing. Anchors should demonstrate strong sales histories. Unanchored centers should have a good tenant mix. Stores in unanchored centers must have strong, stable sales histories. Not more than 25% of the leases should expire in any single year. Credit tenants with base lease terms exceeding five years beyond the final term loan will receive favorable underwriting terms.

Office Loan
Eligible Properties:	CBD and suburban multi-tenant office properties are eligible. Should have a stabilized income. Unacceptable properties include physical or functionally obsolete buildings, buildings that cannot be converted to multi-tenant uses.
Eligible Property Locations:	Serving markets nationwide; the property should be located on main roadways with good visibility and access, or in an established office park. Prefer locations in primary office market areas with the ability to compete and/or re-lease space at market rates. Require strong market presence based on absorption rate, population and employment trends.
Loan Size:	$3 million - $100 million; will also consider larger portfolio transactions.
Debt Service Coverage:	1.20 x minimum
Loan-to-Value Ratio:	Up to 85% in a first position. Properties requiring higher leverage should inquire about mezzanine financing options.
Loan Term:	3, 5, 7, 10, 15. 20, 25 or 30 years
Amortization:	30 years or less depending on major lease terms and expiration, and property age.
Tenancy:	Prefer multi-tenant or credit-tenant properties. Loans for single tenant properties will normally be amortized over the remaining term of the lease and typically will require higher coverage and reserves.
NOI Calculation:	Strongly prefer to receive three years of operating history (waived for new construction). Rent revenue is the lesser of the contractual base rents. Expense recovery must reflect the stabilized operating history of the project. Minimum vacancy of 5% or sub-market average. Recoveries on NNN rents must be consistent with market. Rent Roll - Prefer lease expiration schedules so that the debt coverage ratio does not fall below break-even point. May consider properties with significant rollover risk on a case-by-case basis. Management Fee - Minimum management fee of 5% of effective gross income. Single tenant buildings that are fully maintained and managed by the occupant can be underwritten at a 3% management fee Reserves - $.10 to $.25 per square foot for structural reserves depending on property age and condition and adjusted in accord with the engineering report. Determine tenant improvement and leasing commission reserves from the rollover schedule and market averages.

Industrial Loan
Eligible Properties:	Single and multi-tenant properties including warehouses used for storage, assembly and packaging, as well as research and development facilities.
Eligible Property Locations:	Serving markets nationwide; the property should have good access to primary roads in areas with strong market demand for industrial properties. Should have easy access to major interstate roads as well as key local roads that provide access to local, industrial, and commercial centers. Rail access is also desired. Will also consider secondary markets with strong sponsorship
Loan Size:	$3 million - $40 million; will also consider larger portfolio transactions on a case by case basis.
Debt Service Coverage:	1.20 x minimum
Loan-to-Value Ratio:	Up to 85% on conventional permanent financing. Higher leverage requests should inquire about mezzanine finance options.
Loan Term:	5, 7, 10, 15, 20, 25 and 30 year terms available. Bond backed underwriting may have longer terms available.
Amortization:	30 years depending on major lease terms and expiration, and property age.
Tenancy:	The rent roll should be reasonably diversified with staggered expirations. For multi-tenant properties, require staggered leases to avoid adverse re-leasing risk. Leases should be representative of the market. Single tenant properties typically will require higher coverage and reserves.
NOI Calculation:	Three years of operating history. Warehouse leases should be triple net. Exceptions may be made for structural maintenance and management fees. R&D leases typically written on a modified gross basis. Lease rollovers should be less than 30% GLA in early years of the loan term. Rent Roll - Prefer lease expiration schedules so that the debt coverage ratio does not fall below break-even point. May consider properties with significant rollover risk on a case-by-case basis. Tenants not occupying space and paying full rent for at least 3-months will require a seasoning reserve equal to 3-months rent. Management Fee - Can be 4% if consistent with market. Single tenant buildings that are fully maintained and managed by occupant can be underwritten at a 3% management fee. Reserves -$.10 to $.25 per square foot for structural reserves depending on the property age, condition and percentage of office build-out subject to an engineering report. Determine tenant improvement and leasing commission reserves from the rollover schedule and market averages.

Hospitality Loan
Eligible Properties:	National franchise four and five star franchised properties. Will consider extended stay properties on a case by case basis.
Eligible Property Locations:	Serving markets nationwide, but prefer tier 1 markets with CBD or airport locations; suburban locations should demonstrate strong demand and ability to compete at market rates. Require solid market strength as is determined by, among other factors, revenue par trends, ADR comps, occupancy/breakeven and trends in population and employment.
Loan Types:	Construction, take-out, acquisition or refinance. Will also consider equity or mezzanine debt pieces on a case by case basis.
Loan Size:	$3 million - $50 million; will also consider larger portfolio transactions.
Pricing:	Pricing is based upon the quality of the real estate and the credit strength of the borrower/project with competitive spreads over LIBOR and Treasury indexes.
Debt Service Coverage:	1.30x minimum on senior CMBS debt. DSCRs may not apply on subordinated or structured transactions.
Loan-to-Value Ratio:	Up to 85% maximum LTV in first position. Up to 90% CLTV with mezzanine piece.
Loan Term:	5, 7 or 10 years
Amortization:	30 years depending on property specifics.
Recourse:	All permanent loans are non-recourse subject to standard carve-outs.
Fees:	Origination fees will vary based upon the transaction. BCF will typically risk adjust its pricing based upon loan term, leverage, sponsorship suitability and other underwriting considerations. Third Party Fees: An appraisal, survey, seismic/engineering and environmental report are required. Existing reports may be acceptable, however must require approval of BCF. BCF may request updated reports if reports presented are dated.
Submission Requirements:	Property and ownership description to include resume, net worth and experience of key principals. Property profit and loss statements for last 2 years and month by month for past 12 months. If the property is a non-flagged property information on the management company. Most current appraisal and market study.

Senior Housing
Eligible Properties:	Senior housing facilities considered will include: Skilled and intermediate care Assisted living facilities Congregate care facilities Acute care facilities
Eligible Property Locations:	Serving Markets Nationwide.
Loan Size:	$3 million - $50 million; will also consider larger portfolio transactions.
Types of Loans:	Refinance with Rehabilitation Acquisition with Rehabilitation Straight Acquisition.
Highlights:	Low, fixed rate construction and permanent loans arranged simultaneously; 65% to 80% LTV on all conventional programs; permanent rate is locked prior to construction loan closing on FHA programs; 85% LTV or purchase price for existing refinancing under FHA programs; 90% LTC and 90% LTV for new construction and acquisition/rehab on FHA programs, up to 100% for rehab/expansion of existing property; multi-facility below market portfolio financing; non-recourse subject to standard carve-outs.
Required Documentation:	Two years operating history on the subject property detailed description of the level of care being provided resume on management company financial information on sponsorship use of funds statement current appraisal or market study if available

Manufactured Housing
Eligible Properties:	Three, four, and five-star mobile home parks with a low percentage of RV sites or model homes. BCF accept senior and family parks. Prefer a majority of units to be double-wide. Typical density should be 5 to 7 units per acres, and the average lot size should be 5,000 square feet. Prefer an underground utility system. Requires professional management services. Our flexible prepayment loan program is suited for mobile home park projects given that many owners improve land is in future development with a mobile home park only as an interim/intermediate use.
Eligible Property Locations:	Serving markets nationwide. Require good site access. Prefer a highly visible location with heavy traffic.
Loan Size:	$3 million - $30 million; will also consider larger portfolio transactions.
Debt Service Coverage:	1.20 x minimum
Loan-to-Value Ratio:	Up to 85% on conventional life company programs, 80% LTV on Fannie Mae DUS programs, and up to 90% loan to total acquisition cost available under FHA insured programs
Loan Term:	5, 7 or 10 15, 20, 30 and 35 year terms available
Amortization:	30 years depending upon the loan program chosen.
NOI Calculation:	Strongly prefer to receive three years of operating history. Determine potential gross income using the trailing 12-month historical results. The expense ratios should range from 35% to 45%, management fee underwritten at a minimum of 5% of effective gross income. Include minimum replacement reserves of $30 per unit.

Self Storage
Loan Types & Amounts:	Permanent financing for acquisition, refinance or repositioning. Small Loan Program: $2 Million - $5 Million Large Loan Program: $5 Million - $20 Million
Eligible Property Locations:	Serving markets nationwide. Market areas with a stable current occupancy of competitive product. Rent concessions will be underwritten cautiously and typically require higher coverage and reserves.
Occupancy:	85% minimum occupancy
Debt Service Coverage:	1.25 x minimum
Loan-to-Value Ratio:	Maximum 85% LTV
Loan Term:	5, 7, 10 and 15 years
Amortization:	25 years
Pricing:	Pricing is based upon the quality of the real estate (a, b or c) project economics and borrower suitability. Spreads range from 150 -250 basis points over the corresponding U.S. Treasury.

Corporate Real Estate
Credit:	We will consider investment-grade companies and select below-investment grade companies. Unrated companies should provide three years of financial statements in order for BCF to determine the company's creditworthiness.
Eligible Properties:	Eligible properties include existing and to-be-built retail, office, industrial, warehouses, distribution, R&D, and manufacturing and restaurant facilities. BCF will also consider other special use facilities in certain circumstances. All eligible properties must be single-tenant commercial real estate located in the United States.
Industry Preference:
Eligible Locations:	Serving markets nationwide. While we prefer tier I and tier II Markets with strong market fundamentals in place we often fund transactions in small markets where the company can further the execution of its business plan and project economics and collateral are compelling.
Transaction Size:	There are no preset limits to the amount of capital BCF can invest in a property. BCF will invest in smaller properties particularly if these properties can be pooled into a single transaction. BCFs requires a minimum loan amount of a single transaction be $10 million or more.
Lease Term:	BCF purchases/finances your company's facilities at up to 100% of fair market value and leases them back to you for as long as your company needs them, whether it is 10, 15, 20 years or longer. Rents can be fixed, stepped or periodically reset to best meet financial or tax goals and to take advantage of new financial conditions and contingencies.
Recourse:	Non-recourse, partial recourse and full recourse options are available and are transaction specific.
Fees:	Fees will vary based upon the transaction. BCF will typically risk adjust its pricing based upon term, leverage, credit worthiness/rating and other underwriting considerations. Third Party Fees: An appraisal, survey, seismic/engineering and environmental report may be required. Existing reports may be acceptable; however the assignments require approval of BCF. BCF may request updated reports if reports presented are dated.
Time Frames:	BCF can typically close and fund transactions inside of 14 days with some transactions able to be closed inside of 40 days.