Retail/Office/Industrial

Mezzanine Loan Investment parameters

• National Retail Properties, Inc. (Ticker: NNN) offers mezzanine loans up to a maximum combined LTV of 89.9%.
• Minimum combined DSCR for both senior and mezzanine debt = 1.10 x.
• Minimum current pay = 10% to 12%, and total return inclusive of accrued interest and loan fees = 12% to 14%.
• For loan terms of 36 to 60 months, interest-only current pay with interest accrual is available. For loan terms > 60 months, amortization is required.
• Loan fee is 1% to 2% of loan amount.
• Prepayment lockout for first 12 months with a declining prepayment penalty during the term.
• Minimum loan terms of 36 months and maximum loan terms of 120 months, co-terminus with underlying senior debt.
• Secured by a pledge of either partnership interests or LLC membership interests of the ownership entity.
• Intercreditor agreement required in a form acceptable to the senior lender.

Property Types

Single-tenant office, industrial and retail, and select multi-tenant properties if predominately one tenant or part of a portfolio.

Loan Amounts

Generally, $3,000,000 to $30,000,000. Larger loan amounts may be considered on a case-by-case basis.