American Trust Corporation

Retail Mortgage Program

Base Loan Parameters

Eligible Property: Anchored and unanchored strip centers

Loan Size: $2 million minimum

Security: First mortgage secured by existing retail centers on fee simple land

Loan Term: 10-year maturity loans

Amortization: Generally up to 30 years, based on age, physical location, loan term and other pertinent factors

Loan-to-Value Ratio: Up to 80% of conforming MAI appraisal for Anchored and 75% for Unanchored Strip Centers

Interest Rate: Fixed interest rates priced at a competitive spread over comparable maturity U.S. treasury issue locked two (2) days prior to closing. The interest rate can be locked for up to 60 days with a good faith deposit and a nominal up-front fee or increase in spread.

Debt Service Coverage: Minimum of 1.25 times for Anchored, 1.30 to 1.35 for Weak Anchored, and 1.35 for Unanchored Centers

Prepayment: No prepayment allowed during the first three (3) years of loan; thereafter, prepayment on fixed rate loans will be allowed subject to defeasance. Full prepayment without penalty available during the last three (3) months of the loan term.

Recourse/Exculpation: Non-recourse, except with respect to standard commercial carveouts which include: (i) liability under any statue, regulation, law, or rule relating to hazardous waste and toxic substances, (ii) fraud, waste, misrepresentations, or misappropriation of funds from condemnation, insurance, and operations, (iii) unauthorized transfer of title or majority ownership of borrower, and (iv) all American Trust Corporation’s loss, costs and expenses, including all attorney’s fees arising from Borrower’s bankruptcy.

Escrows: Monthly escrows for real estate taxes, property insurance and replacement reserves and tenant finish and leasing commissions, if applicable.

Reserves at Closing: An escrow of 125% of required environmental remediation and deferred maintenance, as determined by physical inspection and environmental report, will be established at closing.

Specific Reserves: Specific reserve amounts may be required for major future capital improvement items or renovation costs during the term of the loan. These reserve amounts may be accumulated monthly in a sinking fund, or paid in a lump sum, or a combination of both. Monthly sinking fund payments will be deducted from NOI in calculation of Cash Flow Available for Debt Service (CFADS) and Debt Service Coverage Ratios (DSCR).

Subordinate Financing: Prohibited

Application Fee: $2,500 non-refundable inspection/loan processing fee payable to American Trust Corporation with the loan application, will be credited to origination fee at closing

Origination Fee: 1%

What We Do

Lending Programs

Property Types

Application Forms

Global Financing Solutions

Short Term Commercial

Float to Fixed

Small Loan Programs

Hard Money Loans

Credit Tenant Financing

Mezzanine

Multifamily

Office

Health Care Financing

Hotel & Resort Financing

Auto, Marine & Equipment Financing

Mobile Home Park

FHA & Fannie Mae Products

Self Storage

Retail

Industrial

SBA Programs

Factoring and Business Finance

Small and Rural Hospital Finance

Privacy Policy


	Retail Mortgage Program Base Loan Parameters Eligible Property: Anchored and unanchored strip centers Loan Size: $2 million minimum Security: First mortgage secured by existing retail centers on fee simple land Loan Term: 10-year maturity loans Amortization: Generally up to 30 years, based on age, physical location, loan term and other pertinent factors Loan-to-Value Ratio: Up to 80% of conforming MAI appraisal for Anchored and 75% for Unanchored Strip Centers Interest Rate: Fixed interest rates priced at a competitive spread over comparable maturity U.S. treasury issue locked two (2) days prior to closing. The interest rate can be locked for up to 60 days with a good faith deposit and a nominal up-front fee or increase in spread. Debt Service Coverage: Minimum of 1.25 times for Anchored, 1.30 to 1.35 for Weak Anchored, and 1.35 for Unanchored Centers Prepayment: No prepayment allowed during the first three (3) years of loan; thereafter, prepayment on fixed rate loans will be allowed subject to defeasance. Full prepayment without penalty available during the last three (3) months of the loan term. Recourse/Exculpation: Non-recourse, except with respect to standard commercial carveouts which include: (i) liability under any statue, regulation, law, or rule relating to hazardous waste and toxic substances, (ii) fraud, waste, misrepresentations, or misappropriation of funds from condemnation, insurance, and operations, (iii) unauthorized transfer of title or majority ownership of borrower, and (iv) all American Trust Corporation’s loss, costs and expenses, including all attorney’s fees arising from Borrower’s bankruptcy. Escrows: Monthly escrows for real estate taxes, property insurance and replacement reserves and tenant finish and leasing commissions, if applicable. Reserves at Closing: An escrow of 125% of required environmental remediation and deferred maintenance, as determined by physical inspection and environmental report, will be established at closing. Specific Reserves: Specific reserve amounts may be required for major future capital improvement items or renovation costs during the term of the loan. These reserve amounts may be accumulated monthly in a sinking fund, or paid in a lump sum, or a combination of both. Monthly sinking fund payments will be deducted from NOI in calculation of Cash Flow Available for Debt Service (CFADS) and Debt Service Coverage Ratios (DSCR). Subordinate Financing: Prohibited Application Fee: $2,500 non-refundable inspection/loan processing fee payable to American Trust Corporation with the loan application, will be credited to origination fee at closing Origination Fee: 1%
		What We Do Lending Programs Property Types Application Forms

		Global Financing Solutions Short Term Commercial Float to Fixed Small Loan Programs Hard Money Loans Credit Tenant Financing Mezzanine Multifamily Office Health Care Financing Hotel & Resort Financing Auto, Marine & Equipment Financing Mobile Home Park FHA & Fannie Mae Products Self Storage Retail Industrial SBA Programs Factoring and Business Finance Small and Rural Hospital Finance


Privacy Policy