Lending Parameters

Investment criteria

Prima Capital Advisors has investment discretion to invest in commercial mortgage whole loans, commercial mortgage-backed securities, ‘B’-notes, Mezzanine notes, bonds, and preferred shares issued by investment grade rated real estate investment trusts. Investments for discretionary clients generally conform to the following:

Loan Size $ 5-75 million
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 U.S.
Loan to Value Maximum 75%, Target 50-60%
Debt Service Coverage Minimum 1.25X - Target 1.4X to 1.75X
Prepayment Lock-outs and/or defeasance
Maturities 5-20 years (we strongly prefer 5-10 year deals but will go longer for an acceptable premium)
Rates Generally, fixed rate - competitive market spread/yields subject to prevailing market conditions

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