LTV and Spreads on suburban office perm loans in Houston?
I typically do multifamily financing, but a client recently asked me to look at his suburban office property in Houston. Property value is about $10M fully occupied single tenant, 4 years remaining on the lease. does anyone know roughly what LTV and spreads might be? Is there a min DSCR or do lenders look at a different metric for office loan amounts?
[{"id": "islh9ah", "text": "Just a guess 60% of dark value. Single tenant with near term roll is tough other than a bank which would do weird things for relationships, recourse, etc.", "replies": [], "depth": 1}, {"id": "ism5ns7", "text": "Huge reserves for roll over risks. Office is out of favor for lenders at the moment.", "replies": [{"id": "ismk9nz", "text": "Unless class A in booming cities. \n\nBut yeah this is probably a hard loan to get", "replies": [], "depth": 2}], "depth": 1}]