When it comes to hospitality loans, service is paramount.

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Ivy Lender can assist with first lien construction and bridge debt, mezzanine debt and preferred equity investments,
Our team’s focus on strong market fundamentals and quality assets paves the way for our proven track record.

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We pride ourselves on seeking out debt financing opportunities that are underserved by the institutional capital markets. Our current focus is providing non-recourse first lien construction and asset repositioning financing. Our loan programs are designed to provide an alternative for real estate investors and developers who cannot meet their financing needs through a traditional bank lending platform. By offering non-recourse terms, flexible underwriting standards, creative loan structures and fast execution, we help our clients achieve their goals. 

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Ivy Lender Structured Loan Program

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In addition to construction lending, our loan program is also designed to provide financing for acquisition, bridge, debtor-in possession and recapitalization scenarios for commercial real estate projects located throughout the U.S. We have a strong track record of providing capital to the hotel industry, given that many traditional real estate capital sources avoid the hospitality sector, and we also actively pursue lending opportunities on multifamily, senior housing, student housing, office, retail and other specialty assets such as condominium, time share and fractional projects.

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Our Areas of Emphasis in Investment Underwriting Include:

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• Overall quality of the real estate project (post completion/renovation, if applicable)

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• Strong local market fundamentals with appropriate demand generators

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• Demonstrated relevant experience and success of sponsorship

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• Qualified team (developer, general contractor, architect, etc.)

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• Significant fresh cash equity capital invested by sponsorship

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• Solid plan for execution of business plan and attainment of appropriate financial benchmarks

 

ELIGIBLE LOCATIONS

 

Real estate projects located throughout the United States.

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PROPERTY TYPES

 

Strong emphasis on hotels, but also pursuing opportunities to lend on multifamily, student housing, office, and select other specialty assets such as condominium.

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SECURITY

 

First mortgage lien on the subject property, and pledge of ownership interests.

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LOAN SIZES

 

$15 million to $75 million (larger loans sizes considered on a limited basis for highly attractive opportunities).

 

LOAN TO COST RATIO

 

Up to 75% LTC

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RECOURSE

 

Non-recourse (subject to underwriting), with standard carve out guarantees and completion guarantees on construction loans.

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CLOSING TIME

 

4 to 8 weeks from application and deposit remittance.

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INTEREST RATE

 

Libor-based floating rate typically between L +7.50% and L +8.75%

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DEBT SERVICE

 

Interest only during the primary term.

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LOAN TERM

 

36 month primary term; with up two 12-month extensions.

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ORIGINATION FEE

 

2% of loan amount.

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EXIT FEE

 

1% to 2% of loan amount.

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PREPAYMENT

 

12 to 18-months post certificate of occupancy.

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RESERVES/ESCROWS

 

Real estate taxes, insurance, replacement reserves, and mortgage interest (as may be required).

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UNDERWRITING

 

Emphasis on equity capital funded in connection with loan, asset quality, value creation business plan, market analysis, and sponsorship.

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EXPENSE DEPOSIT

 

$35,000, payable upon acceptance of Loan Application to cover 3rd party reports and out of pocket closing costs. Any remainder credited back to borrower at loan closing, or refunded in the event the subject loan application is not approved by Ivy Lender and it's affiliates.

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THIRD PARTY REPORTS

 

Appraisal, and Phase I environmental, and other reports as may be relevant and / or required by Ivy Lender (feasibility, property condition etc).

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