• Acquisition

• Refinance

• Fixed Rate long Term

• Floating Rate

• Bridge

• Interim

• Mezzanine

• Equity

• Construction & Rehab

We provide competitive rates and attractive terms. AFR approaches loans creatively as our goal is to place financing to benefit the borrower with the best possible return on his investment. We can structure loans with earn out provisions, mezzanine debt, cross collateralization and equity participation.

Rates and Terms

Rates vary according to the property type and are based on a specific index. Generally, long term fixed rate loans are priced based on a spread over the corresponding 5, 7, 10 or 20 Year U.S. Treasury Note or Treasury SWAPS.  The corresponding Thirty Day LIBOR is the base interest rate used, plus a spread on a floating rate loan. Short term loans are usually based on prime rate or short term treasuries, as the base rate, plus a spread.

Assumable, non-recourse (will have certain carve-outs clauses), fully amortized loans with 5, 7, 10 and 15 year terms with 20, 25 and 30 year amortizations are available. Depending on the program, loan to values up to 75% on senior debt and can be as high as 90% with mezzanine financing. Mezzanine pieces are provided as a percentage of total value of stabilized properties and range between 5% and 20% of the asset’s value. Mezzanine debt is typically structured on a recourse basis, although non recourse is available, at a fixed preferred rate. Terms may run for up to 5 years with possible options to extend.

AFR offers commercial REAL ESTATE LOANS for:

• Multi-Family

• Retail, Anchored & Unanchored

• Office Buildings

• Office / Retail

• Flagged Hotels

• Boutique Hotels

• Mobile Home Parks

• Warehouse / Flex Space

• Self-Storage Facilities

• Industrial

• Marinas

• Healthcare Properties

• Land

• Construction

• Acquisitions & Development

• Conversions

• Condo Association Funding

Our clientele varies from the large nationally based multiple property owners & developers to the smaller , single-property, owners. The expertise of our underwriting department allows us to underwrite simple to complex loan transactions providing our clients with the best structure available.

Preliminary Review

When a principal brings us a loan, we immediately delve in to see if the loan is viable. We feel that it is in the best interest of our clients, as well as ourselves, to advise them from the initial stages whether a loan is feasible or not. When a principal contacts us, we screen the transaction and request preliminary items to analyze the loan. Initially, the following is an example of items needed to determine feasibility:

• Income and Operating Statement – Year-to-date

• Income and Operating Statement – Past three years

• Rent Roll

• Tax Returns

• Principal Financial Statement

• Photos

The above captioned list is a general list for example purposes. Our representative will provide a list conducive to the property type. Our underwriting department will input numbers into our templates and size the loan based on our underwriting criteria. Once we determine that the transaction is feasible, our representative will present the borrower with the best rate and terms available. We diligently work to obtain the best structure source for each transaction and structure the loan to provide the best results for our clients.

Underwriting Variables

Each asset has specific parameters including debt service coverage, loan-to-value, term, amortization, etc. These parameters vary according to property type. In underwriting a loan, management fees, loan to value, capitalization rate, vacancy rate, and replacement reserves are items which are taken into account and vary according to property type.

Equity capital can represent the most critical and difficult component of any real estate transaction. AFR, and its affiliate, specializes in identifying the most compatible capital alternatives for any real estate acquisition, refinancing or recapitalization. We have completed multiple creative equity structures throughout our history..

Our expertise includes:

• Single-asset joint ventures

• Entity investments and ventures

• Single-investor funds

• Preferred equity

• Upreit/Downreit Transactions

• Pre-sales

To help you accomplish your capitalization goals, AFR has access to the following equity investment group providers:

• Insurance companies

• Pension funds

• Capital and credit companies

• Reits

• Investment banks

• Opportunity funds

• Hedge funds

• Endowment funds

• Foundations

• Advisors

• Trusts

• High/net-worth individuals

• Domestic (regional to money-center) banks

• Foreign banks

• Domestic and foreign syndicators

With many years of experience and millions of dollars in closed transactions, AFR has unrivaled experience in the Structured Finance funding stack. Whether for acquisitions or recapitalizations, the proper debt structuring can create and maximize profits for any transaction, and hybrid structures are often critical in creating or liquidating the equity pent up in an asset.

AFR Structured Finance products include:

• B-notes

• Mezzanine loans/preferred equity

• Stand-by commitments

• Forward take-outs

• Participating mortgages

• Convertible mortgages

• Wrap mortgages

In the current market, accessing the right capital and capital partner is critical to maximizing the performance of an asset. With a large variety of capital funds, multiple sources accessible via our proprietary capital-tracking database, AFR is uniquely positioned to help you achieve your capitalization goals.