Investment Criteria

Prima Capital Advisors LLC has complete investment discretion to originate and/or purchase commercial mortgage whole loans, commercial mortgage-backed securities, ‘B’-notes, Mezzanine notes and bonds issued by investment grade rated real estate investment trusts, subject to the following:

Whole Loan Size:	$ 5 - 60 million (Fixed rate only)
Property Types:	Anchored retail (preference for grocery anchored centers - no outlets), office buildings, industrial (bulk warehouse) and multifamily
Location:	Primary and secondary markets in the continental U.S.
Security:	Non-recourse first mortgages (with standard industry carve-outs for environmental, etc.)
Loan to Value:	Maximum 75%, target 50-60%
Debt Service Coverage:	Minimum 1.25X - target 1.3X to 1.5X
Prepayment:	Combination of lock-outs and defeasance
Maturities:	5 - 20 years (we strongly prefer 5-10 year deals but will go longer for an acceptable premium)
Amortization:	Generally 25-30 year amortization schedules, subject to faster speeds for over market lease structures or net leased properties
Origination Fee:	3/4%
Rates:	Fixed rate only - competitive market spreads/yields subject to prevailing market conditions
Other:	Prima only will finance existing, substantially leased, income producing real estate on a fixed rate basis. We are not seeking development or renovation loans. We selectively will consider forward commitments which will be subject to various leasing and cash flow achievement levels. We do NOT finance lodging, health care related assets, land, or construction/major renovation

Prima also represents a pension client for which it does not possess complete investment discretion. This client has investment parameters similar to those found for our discretionary clients, however, this client is seeking whole loans in the $25-100 million size range.

Prima also is interested in purchasing investment grade tranches of rated commercial mortgage-backed securities. Prima’s preference is to purchase “A” and “BBB”-rated tranches of single asset and small-pool securitizations. We generally do not purchase “Conduit” securities.

Commercial Mortgage Investment Criteria