EXAMPLE
REQUEST FOR FINANCING


Supermart
$2,475,000 Loan Request

Located At:
111 Havana St. (fictitious)
Aurora, Colorado  80014

Main Building Picture Placed Here

 

Submitted By:
  
MTG Brokers Corp.
Denver, CO 80229
Phone:  (866) XXX-XXXX (ext X)
Fax:  (303) XXX-XXXX

Executive Summary: Supermart

 January 01, 2004

Executive Summary
The collateral is a 1 story retail building located on Havana street with high volume of traffic. The requested loan amount is $2,475,400 with a requested loan term of 10 years and a 25-year amortization schedule. The purpose of the loan is to refinance existing balloon mortgage debt into a long term fixed rate note. Loan to include closing costs, required prepaid items, current note holder settlement and payoff fees.
 
The borrowing entity is: i.e. XYZ LLC, owned by the following experienced property operators and managers of similar retail properties.
 
  
XYZ  LLC, Shareholders / Supermarket Shares:
 
CONTACT: Joe Shareholder SSN XXX--XX-XXXX @ 21.2% / 38.43%
1111 S. Somewhere Pl.
Aurora CO 80010
 
Suzy Shareholder SSN XXX--XX-XXXX @ 8.5% / 10.97%
22 Somewhere Dr.
Westwood, NJ 07675
 
Shareholder Partnership EIN XX-XXXXXXX @ 12.8% / 16.48%)
123 Somewhere Ct.
Scarsdale, NY 10583
 
Shareholder Trust EIN XX-XXXXXXX @ 12.8% / 16.48%
C/o Shareholder Bob
333 Somewhere St.
Aurora, CO 80010

ABC Trust EIN XX-XXXXXXX @ 15% / 17.65%
C/o Leonard Shareholder
13 Somewhere Ave.
River Edge, NJ 07661

Sharen Shareholder SSN XXX--XX-XXXX @ 29.7% / N/A
60 Somewhere Way
Closter, NJ 07624



 




Financial Analysis Report

Property Information Underwriting Constraints Fees & Reserves Note Rate Parameters
Property Type Retail Max LTV 80% Min. Mgmt. Fee 4.00% Curr. Index Yield 4.000% Loan Term 10 Year
Loan Name Supermart Min. DSCR 1.25% Min. Vac Reserve 7.00% Int. Rate Spread 2% Amortization 25 Year
Borrower Type Limited or General Partnership Econ. Vacancy 13.75%   Final Note Rate 6% Loan Purpose Refinance
Requested Loan 2,475,000 Market Vacancy 9% Int. Rate Index To Be Determined Existing Loan Balance 2,311,750
  Recent Appraisal Value 3,500,000

BuildingType Retail TILC Reserve $.00 Replacement Reserve $.13


Final Underwritten (Calculations Based on Final Underwriting)
Loan Parameters Derived Results
Max. Loan @ Min. DSC 3,160,746 DSC @ Proposed Loan 1.6 Proposed Annual Debt Svc 192,873 Est. Terminal LTV 49.0%
Max. Loan @ Max. LTV 3,078,907 LTV @ Proposed Loan  64.3% Proposed Monthly Pymt 16,073 Requested LTV  64.3%
Max Allowable Loan 2,475,000 Direct Capitalization Value 3,848,633 Balloon @ Maturity 1,885,038 Cap Rate @ Appr. Value 8.80
Loan Request 2,475,000 Direct Capitalization Rate 8.00 Value at Market Cap 3,848,633 Loan Constant 0.0779

Originator Underwritten (Calculations Based on Originator Underwriting)
Loan Parameters Derived Results
Max. Loan @ Min. DSC 3,160,746 DSC @ Proposed Loan 1.6 Proposed Annual Debt Svc 192,873 Est. Terminal LTV 49.0%
Max. Loan @ Max. LTV 3,078,907 LTV @ Proposed Loan  64.3% Proposed Monthly Pymt 16,073 Requested LTV  64.3%
Max Allowable Loan 2,475,000 Direct Capitalization Value 3,848,633 Balloon @ Maturity 1,885,038 Cap Rate @ Appr. Value 8.80
Loan Request 2,475,000 Direct Capitalization Rate 8.00 Value at Market Cap 3,848,633 Loan Constant 0.0779

Alternative Underwriting Scenarios



2003 (Calculations Based on Final Underwriting)

Loan Parameters Derived Results
Max. Loan @ Min. DSC 4,751,149 DSC @ Proposed Loan 2.4 Proposed Annual Debt Svc 192,873 Est. Terminal LTV 32.6%
Max. Loan @ Max. LTV 4,628,130 LTV @ Proposed Loan  42.8% Proposed Monthly Pymt 16,073 Requested LTV  42.8%
Max Allowable Loan 2,475,000 Direct Capitalization Value 5,785,163 Balloon @ Maturity 1,885,038 Cap Rate @ Appr. Value 13.22
Loan Request 2,475,000 Direct Capitalization Rate 8.00 Value at Market Cap 5,785,163 Loan Constant 0.0779



2002 (Calculations Based on Final Underwriting)
Loan Parameters Derived Results
Max. Loan @ Min. DSC 3,280,439 DSC @ Proposed Loan 1.66 Proposed Annual Debt Svc 192,873 Est. Terminal LTV 47.2%
Max. Loan @ Max. LTV 3,195,500 LTV @ Proposed Loan  62.0% Proposed Monthly Pymt 16,073 Requested LTV  62.0%
Max Allowable Loan 2,475,000 Direct Capitalization Value 3,994,375 Balloon @ Maturity 1,885,038 Cap Rate @ Appr. Value 9.13
Loan Request 2,475,000 Direct Capitalization Rate 8.00 Value at Market Cap 3,994,375 Loan Constant 0.0779

2001 (Calculations Based on Final Underwriting)
Loan Parameters Derived Results
Max. Loan @ Min. DSC 3,144,458 DSC @ Proposed Loan 1.59 Proposed Annual Debt Svc 192,873 Est. Terminal LTV 49.2%
Max. Loan @ Max. LTV 3,063,040 LTV @ Proposed Loan  64.6% Proposed Monthly Pymt 16,073 Requested LTV  64.6%
Max Allowable Loan 2,475,000 Direct Capitalization Value 3,828,800 Balloon @ Maturity 1,885,038 Cap Rate @ Appr. Value 8.75
Loan Request 2,475,000 Direct Capitalization Rate 8.00 Value at Market Cap 3,828,800 Loan Constant 0.0779




Income/Expense Schedule:
Income: 2001 Change 2002 Change 2003 Originator U/W % Final U/W %
Base Rent  578,212  -8.08%  534,991  -9.21%  489,852  515,265   79.56%  515,265  79.56%
Expense Reimbursements    %    100%  132,352  132,352   20.44%  132,352  20.44%
Percentage Rent    %    %       0%    0%
Parking Income    %    %       0%    0%
Other Income  4,561  %    %       0%    0%
Vacancy & Coll. Loss    %    %    89,056   13.75%  89,056  13.75%
Effective Gross Income  582,773  -8.93%  534,991  14.02%  622,204  558,561   100%  558,561  100%
Real Estate Taxes  71,767  2.69%  73,748  -2.7%  71,810  75,960   13.6%  75,960  13.6%
Property Insurance  5,999  7.45%  6,482  -2.89%  6,300  6,676   1.2%  6,676  1.2%
Utilities  18,126  19.37%  22,480  9.28%  24,780  25,523   4.57%  25,523  4.57%
Repairs and Maintenance    100%  2,939  78.18%  13,471  13,875   2.48%  13,875  2.48%
Janitorial  9,862  -45.03%  6,800  %    10,158   1.82%  10,158  1.82%
Management Fees  23,700  -201.57%  7,859  12.81%  9,014  24,411   4.37%  24,411  4.37%
Payroll and Benefits    %    %       0%    0%
Advertising and Marketing    100%  900  %    927   0.17%  927  0.17%
Professional Fees  12,843  54.55%  28,259  -871.1%  2,910  29,107   5.21%  29,107  5.21%
General and Administrative  593  98.41%  37,390  -210.29%  12,050  38,512   6.89%  38,512  6.89%
Other Expenses  18,416  -1088.13%  1,550  85.58%  10,746  18,968   3.4%  18,968  3.4%
Ground Rent    %    %       0%    0%
Total Operating Expenses  161,306  14.38%  188,407  -24.71%  151,081  244,118   43.7%  244,118  43.7%
Net Operating Income  421,467  -21.61%  346,584  26.43%  471,123  314,443   56.3%  314,443  56.3%
Leasing Commissions    %    %     $0.00 /sf   $0.00 /sf
Tenant Improvements    %    %       0%    0%
Cap Ex. (Repl. Reserves)  7,413  %  7,413  %  7,413  6,552 $0.13 /sf  6,552 $0.13 /sf
Extraordinary Capital Exp.  107,750  -449.16%  19,621  -2087.4%  897     0%    0%
Total Capital Items  115,163  -325.99%  27,034  -225.32%  8,310  6,552   1.17%  6,552  1.17%
Net Cash Flow  306,304  4.15%  319,550  30.95%  462,813  307,891   55.12%  307,891  55.12%

MTG Brokers Corp.
http://www.mtgbrokerscorp.com/


Notes to Financial Analysis

Property Name Item Note
Supermart General Notes ALL 2001 & 2002 Income & Expenses taken from Tax Returns
2003 figures taken from Accounting Records that accurately distinguish Income & Expense amounts
Supermart Base Rent ALL 2001 & 2002 Income & Expenses taken from Tax Returns
2003 figures taken from Accounting Records that accurately distinguish Income & Expense amounts (tax returnes not yet avaiable for 2003)
Supermart Other Income Interest Income
Supermart Repairs and Maintenance Snow Remval, Lot Sweeping
Supermart General and Administrative 2001
$593 Bank fees

2002
$23279 Bad Debts
$11200 Acct.
$1188 Bank fees
$1723 Security
$4011 Outside Services
Supermart Other Expenses 2001
$18416 MISC.

2002
$917 Meals/Entertainment
$431 Misc.
$202 Postage
Supermart Extraordinary Capital Exp. 2001
Roof replacement

2002
Industrial Dumpsters

2003
Lot Seal & Stripe

 

 

 

MTG Brokers Corp.
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RENT ROLL: Supermart


No. Building Name Property Type Tenant Name Leased Area Lease Start Lease Expire Annual Rent Annual Rent /SF/Yr Est Market Rent /SF/Yr Occupied Since Notes
1. 111 S. Havana St. Retail Supermarket 16,582 1/1/2004 12/31/2008 $160,348 $9.67 $9.67 1999  
2. 111 S. Havana St. Retail Garden Stuff 8,857         $8.00    
3. 111 S. Havana St. Retail Nik-Nak's 3,210 3/21/2001 8/17/2004 $46,545 $14.50 $14.50 2001  
4. 111 S. Havana St. Retail Lounge 2,594 9/10/1999 9/9/2004 $31,128 $12.00 $12.00 1999  
5. 111 S. Havana St. Retail Cafe 2,602 8/1/2003 7/31/2008 $31,224 $12.00 $12.00 1998  
6. 111 S. Havana St. Retail Liquors 2,453 5/1/2000 4/30/2005 $33,116 $13.50 $13.50 2000  
7. 111 S. Havana St. Retail Music Store 5,018 12/31/2003 12/31/2008 $37,635 $7.50 $7.50 1998  
8. 111 S. Havana St. Retail Archade 4,583 12/4/2002 4/1/2007 $50,413 $11.00 $11.00 2002  
9. 111 S. Havana St. Retail Fitness Center 2,000 4/1/2004 3/28/2009 $24,000 $12.00 $12.00 1998    
10. 111 S. Havana St. Retail Beauty Salon 1,000 5/1/2004 4/30/2009 $12,000 $12.00 $12.00  
UNDER CONTRACTION    
11. 111 S. Havana St. Retail Photo SHop 1,500 5/1/2004 4/30/2009 $18,000 $12.00 $12.00  

UNDER CONTRACTION
(Base Rent & Price/SF UNDER
consideration)   


Totals:

Net Rental Area (SF) 50,399
Occupied Area (SF) 41,542
Vacant Area (SF) 8,857
Physical Vacancy (%) 17.57%
Economic Vacancy (%) 13.75%
Avg. Overall Rent/SF * $ 8.82
Potential Gross Income $515,265

*Avg. Overall Rent/SF does not include income from vacant area.




MTG Brokers Corp.
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Tenant Improvement and Leasing Commission Analysis



Loan Name Supermart Borrower Name
XYZ LLC
 Borrower Type Limited or General Partnership Property Type Retail


No. Year Total SF Expiring NRA Expiring DSCR Threshold Analysis
NCF after TI & LC DSCR During Loan Term Deficiency $ to Threshold
1 2004 14,661 29% 307,891 1.60 .00
2 2005 2,453 5% 307,891 1.60 .00
3 2006    % 307,891 1.60 .00
4 2007 4,583 9% 307,891 1.60 .00
5 2008 24,202 48% 307,891 1.60 .00
6 2009 13,357 27% 307,891 1.60 .00
7 2010 8,257 16% 307,891 1.60 .00
8 2011    % 307,891 1.60 .00
9 2012 4,583 9% 307,891 1.60 .00
10 2013    % 307,891 1.60 .00
11 2014 2,602 5% 307,891 1.60 .00
  Total 74,698  % 3,386,797   .00

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