Lending Parameters

  Fixed Rate Commercial Mortgages Floating Rate Commercial Mortgages
Loan Amount $5,000,000 to $250,000,000 $10,000,000 to $75,000,000
Loan Term 5, 7 and 10 Year Generally 2 to 3 years
Asset Types Office, retail, industrial, multifamily, hotel and mobile home parks. Other asset classes to be considered on a deal-by-deal basis Office, retail, industrial, multifamily, and hotel. Other asset classes to be considered on a deal-by-deal basis
Security First mortgage and Mezzanine First mortgage
Borrower Entity Single purpose entity Single purpose entity
Loan-to-Value Up to 75% of appraised value. Higher leverage mezzanine transactions considered on a deal-by-deal basis Up to 75% of appraised value. Higher leverage and mezzanine transactions considered on a deal-by-deal basis
DSCR Requirement 1.30x on LCF underwritten net cash flow. 1.25x for multifamily. To be determined on a deal-by-deal basis
Amortization Typically 30 year amortization Interest only
Interest Rate Competitive swap based pricing Competitive LIBOR based pricing
Origination Fee Generally par 1% of the Loan Amount
Exit Fee None Generally 1% of the Loan Amount. May be waived if the Loan is refinanced by Ladder Capital
TI/LC, CapEx and Other Reserves Ongoing TI/LC and CapEx reserves collected unless low leverage and strong sponsor An amount adequate as determined by Borrower and Lender. Future Funding of Reserves may be available on a deal-by-deal basis
Underwriting Fee & Expense Deposit Generally $7,500 underwriting fee. Expense deposit adequate to cover third party reports, legal fees and other customary costs Generally $7,500 underwriting fee. Expense deposit adequate to cover third party reports, legal fees and other customary costs
Prepayment Defeasance or yield maintenance, locked out for the earlier of (i) three years following the full funding of the Loan and (ii) two years after the securitization of the Loan Freely prepayable after short lockout/yield maintenance period
Recourse Non-recourse to Key Principals except for customary bad boy carve-outs Non-recourse to Key Principals except for customary bad boy carve-outs

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