Info Package Checklist for Strip Center Financings?
Pretty straightforward. Anyone have a good info package checklist that they recommend for strip center financings? Basically, the required items to make it easiest for any lender to evaluate and get to a term sheet.
[{"id": "gm27pr9", "text": "Rent roll, leases, two years of budgets and variances, capex plans, tenant sales (if they have to report), leases. \n\nI\u2019m on the ownership/acquisition side, so not a finance guy. I just know that\u2019s generally what\u2019s requested.", "replies": [{"id": "gm2ljqr", "text": "Solid list but just to expound on the capex, try and find out when the roof was last replaced and if there's a warranty. Additionally, see how old the HVAC units are.", "replies": [{"id": "gm41aw1", "text": "Should be taken care of by a property condition report. Good point!", "replies": [], "depth": 3}], "depth": 2}, {"id": "gm2ouse", "text": "Solid list, coming from the finance side. Would add historical occupancy, when tenants last renewed, co-tenancy/termination options and TIs/free rent given to new leases/renewals signed in the last two years. If your trying to finance retail right now it\u2019s tough to get leverage FYI.", "replies": [{"id": "gm41yiw", "text": "Agreed on all points! Co/tenancy and Terminations should be in the leases, but if you\u2019re abstracting hours leases send those over too. May be easier for the lender to digest.", "replies": [], "depth": 3}], "depth": 2}, {"id": "gm6v01e", "text": "Solid list. With covid they\u2019ll also ask for info on rent relief requests, who is paying rent, what stores are open, etc", "replies": [], "depth": 2}], "depth": 1}, {"id": "gm33gsa", "text": "Current Rent Roll including a breakdown of CAM reimbursements, additional rents as a percentage of sales, and regular rents. \n\nLeases including all extensions and addendums. Be prepared to have thoughtful updates on any leases maturing in the next 3 years. \n\nHistorical Operating Statements for 2019 &amp; 2020. Be prepared to provide 2018 if there are material changes between 2019 &amp; 2020. Any non-recurring capital improvements should be notated and itemized. \n\nTax returns for 2018 and 2019 for the ownership entity if they file separate tax returns from the owner\n\nPreliminary Title Report (the bank will pull one too, but you need to know what\u2019s on it before your bank does\n\nMost recent environmental report like a Phase 1 \n\nBudgets for any future/upcoming renovations \n\nOwner\u2019s Personal Financial Statement \n\nOwners\u2019s Tax returns for 2018 and 2019 (including K-1s and all supporting addenda)\n\nOwner\u2019s Verification of Liquidity", "replies": [], "depth": 1}]