Permanent Loans
Loan Purpose	Acquisition loans; refinancing existing debt
Loan Amounts	$2 million to $25 million
LTV	65% to 70% of LTV (30% to 35% equity)
Interest Rate	Fixed or floating
Loan Term	5 to 10 years
Amortization	15 to 25 years
Prepayment	Varies depending upon lender; Yield maintenance or declining %
Debt Service Coverage	Generally 1.30:1 minimum
Guarantees	Generally required; may be reduced to carve-outs after performance.

 

Construction Loans
Loan Purpose	New marina construction; major expansion or improvements to an existing marina
Loan Amounts	$2 million to $20 million
LTV	55% to 65% of LTV (35% to 45% equity)
Interest Rate	Floating; fixed or floating during mini-perm
Loan Term	2 years converting to mini-perm
Amortization	Interest-only during construction; amortization during mini-perm
Prepayment	No prepay permitted during construction
Debt Service Coverage	Not applicable during construction
Guarantees	Required. In addition, completion guarantee during construction.

Loan terms and conditions are determined by:

• Sponsor financial strength and experience
• Debt service coverage ratio (DSCR)
• Loan-to-value (LTV)
• Loan-to-cost (LTC) and cash equity if acquisition or new construction
• Location and access of the marina
• Marina market (trends in occupancy and rental rate trends)
• Capital market conditions