New Business
Property Types:
Apartment | Industrial | Manufactured Housing | Mixed Use | Office | Parking | Retail | Retirement
Loan Types:
Permanent | Construction/Permanent | Forward Commitment
Parameters:
Loan Size - $10,000,000 to over $100,000,000
Interest Rates - Competitive market based spread over comparable Treasuries. Rate Locked upon receipt of an executed application with earnest money deposit.
Credit Tenant Lending:
Public or private companies, rated investment grade (BBB - or better) by Northwestern Mutual or a public debt rating service, such as Standard & Poor's or Moody's.
General purpose real estate strongly preferred over special use Improvements.
Closing / Due Diligence
Consultant Reports:
Non-Invasive Environmental
Property Physical Condition
Legal:
Unless unusual timing requirements or loan complexity dictates, Northwestern Mutual will perform title, survey and lease review, as well as prepare loan documents at no expense to the borrower.
Construction
Combination construction and permanent loan allows for smooth development.
Fixed rates - predetermined loan amount. The interest rate and amortization schedule are determined at the time of application and do not change throughout the loan term, eliminating interest rate risk during the construction period.
One lender - both components of financing are negotiated with one party.
Recourse - to borrower and/or an acceptable creditworthy party is required through the construction period and lease up, then liability is limited to the standard carve outs and environmental.
In-house closing and construction administration.
Underwriting
Loan to Value:
75% maximum (unless single-tenant credit loan)
Debt Coverage Ratio:
1.20x minimum (unless single-tenant credit loan)
Term:
10 year
Amortization:
Variable
Liability:
Typically non-recourse to borrower, except for standard carve outs and environmental
Deposits:
2-3% refundable earnest money deposit required to lock rate
Loan Fees:
Negotiable
Appraisal:
Northwestern Mutual prepares its own appraisal at no cost to the borrower
