Core Portfolio Lending

Download PDF: Commercial Mortgage Lending - Core Portfolio Lending


Property Types

  • Anchored Retail
  • Office (Including Medical Office)
  • Industrial
  • Multi-family
  • Select Self-Storage
  • Select Hotel

Loan Sizing

  • $10 million and above

Loan Terms

  • 3 - 30 year terms
  • Two-way call and rate adjustments available

Amortization

  • 30-year amortization schedule or less
  • Partial and full-term interest-only (transaction specific)

Geographic Location

  • Major metropolitan areas throughout the United States

Loan to Value

  • Typically up to 65%, with the ability to go to 70% on select transactions

Interest Rate

  • Fixed rate based on competitive spreads over comparable term U.S. treasuries
  • Rate lock available at application (up to 9 months forward commitment)

Fees

  • Fee or par quotes available
  • Minimal due diligence processing fee

Prepayment Provisions

  • Greater of 1% of make whole to U.S. treasuries with last 60 days at par
  • Flexible prepayment options available

Escrows (as needed)

  • Taxes and insurance
  • Tenant improvement and leasing commissions
  • Capital improvements

Closing

  • Typically performed by internal loan closing professionals at a stated flat fee
  • Local counsel hired on an as needed basis
  • Ability to accommodate loan closings less than 60 days

Servicing

  • Principal Real Estate Investors retains in-house servicing on all loans

Deposits

  • 1-3% good faith deposits required; 1% at application and 1-2% at commitment

Borrowing Entity

  • Single purpose entity (SPE) or single asset entity (SAE) preferred

Third Party Reports

  • MAI appraisal
  • Phase I environmental
  • Phase II environmental (as needed)
  • Property Conditions assessment
  • Seismic (as needed)

 

Disclosure

Principal Real Estate Investors, LLC (the “Firm”) is the dedicated real estate group of Principal Global Investors. The Firm is a registered investment adviser and a member of the Principal Financial Group. “The Principal Financial Group” and “The Principal” are registered trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group.

The information in this document has been derived from sources believed to be accurate as of January 2016. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however we do not independently verify or guarantee its accuracy or validity.

Subject to any contrary provisions of applicable law, no company in the Principal Financial Group nor any of their employees or directors gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way (including by reason of negligence) for errors or omissions in this document.

The information in this document contains general information only and should not be considered as a comprehensive statement on any matter and should not be relied upon as such nor should it be construed as specific advice or recommendation. The general information it contains does not take account of any borrower’s objectives, particular needs or financial situation, nor should it be relied upon in any way as a forecast or guarantee of future events . All expressions of opinion and predictions in this document are subject to change without notice.

This document is issued in The United States by Principal Real Estate Investors, LLC, which is regulated by the U.S. Securities and Exchange Commission.

Terms, conditions, fees, expenses, pricing and other general guidelines and provisions are subject to change.

As a general matter, commercial mortgage lending entails a degree of risk that is typically only suitable for sophisticated institutional and professional investors for whom such an investment is not a complete investment program and who fully understand and are capable of bearing the risks associated with such strategy.