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:	$ 3 - 50 million (Fixed rate only)
Property Types:	Anchored retail, office buildings, industrial (bulk warehouse) & multifamily
Location:	Primary and secondary markets in the continental U.S.
Security:	Non-recourse first mortgages (with standard industry carve-outs)
Loan to Value:	Maximum 75%
Debt Service Coverage:	Minimum 1.20 X - lower on credit tenant net lease transactions
Prepayment:	Combination of lock-outs and defeasance
Maturities:	5 - 20 years
Amortization:	Generally 25-30 year amortization schedules with selective use of up front, interest only periods
Origination Fee:	3/4%
Other:	Prima will finance existing, 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.

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