Real Estate Mortgage Banking
Thomas M. CohenPrincipal
Johnson Capital Of Kansas7201 129th Street, Suite 110Overland Park, KS. 66213
(o) 913-685-9200(f) 913-685-9213(c) 913-226-1001
Email: [email protected]
Johnson Capital Overview Headquartered in Irvine, California Founded in 1987 by CEO Guy Johnson Specialize in permanent debt, bridge, mezz, and
structured financing– Transactions ranging from $1 million to over $300
million
– Over $1 billion in closings so far in 2008
Trusted, Valuable Brand One of the largest independently owned,
integrated real estate finance companies in the country
17 offices
– Irvine, CA Los Angeles Dallas– Encino, CA San Diego, CA Chicago– San Jose, CA Phoenix Washington, DC (Freddie Mac)– Denver Salt Lake City (FHA)– Little Rock (FHA) Kansas City– New York City Norwalk, CT (FHA)– Boca Raton San Francisco
Business Overview Operates numerous business platforms:
– Life Insurance Correspondent– Multifamily Lending Groups (FHA,
Freddie)– Johnson Capital Servicing– Johnson Capital Express (Small loans)– JCR Capital (Mezz, Preferred Equity,
special situations)– JCSS (Special Servicing)
Financing for All Property Types Multifamily
Office
Retail
Industrial
Hotels
Mixed-Use
Manufactured Housing
Credit-Tenant Leases
Assisted Living/Nursing homes
Hospitality
Loan Parameters Fixed or floating Min size: $1m. Max size: no max Recourse: historically none except for standard
carveouts (for fraud, environmental indemnity, waste). Currently, recourse required more frequently
Prepayment Penalty: yes (however some lenders, i.e. Credit Unions are open to prepay)
Permanent Financing Five to thirty year term
Up to thirty year amortization (multifamily only)
Interest only: typically not available today
Multifamily: Up to 80% LTV
Commercial: up to 65% LTV
Permanent Financing Players Agencies – Fannie, Freddie, and FHA
Insurance Companies (currently out of the market or only lending 60-65% LTV)
Credit Unions
Banks
Fannie Mae and Freddie Mac Solutions
Fixed Rate
ARM
Early Rate Lock
Supplemental mortgages
Affordable Housing
Bonds & Credit Enhancement
Seniors
Student Housing
Freddie Mac: Early Rate Lock Program Advantages
Ability to rate lock prior to receipt of appraisal or other third party reports
Rate held for four months with no addl premium
Can go forward well beyond four months for property in lease up with approx. 3-5bps/mo. premium
Max loan: 80% LTV and 1.25x dscr
Life Insurance Companies
Strong borrowers with Class A/B properties
Portfolio lenders (can be more flexible on terms & predictable in execution)
Max LTV: 65%
Amortization: max to 20 yrs
Life Insurance Companies American Family (out of the market) American Fidelity (quoting) American National (quoting) Babson Capital (formerly Mass Mutual) Country Companies (quoting) Farm Bureau of Michigan (out of the market) John Hancock (quoting) New York Life (quoting) One America (formerly AUL) (quoting) Protective (out of the market) Prudential
HUD/FHA FHA insures mortgages originated by HUD lenders
FHA 221(d)(4) non recourse construction/perm and substantial rehab program (40 year fully amortizing)
FHA 223(f): non recourse acquisition/rehabs and refi’s (35 year fully amortizing)
FHA 232 Program: seniors housing
2008 ClosingsMidwest Nephrology Medical Office Building
Independence, MO
Description: 12,558sf, built in 2007, 2 tenantsLoan Amount: $2,300,000Term: 10 YearsAmortization: 25 YearsRate: 6.00%Lender: Country LifeRecourse: NoneClosed: January, 2008Comments: High $/sf mitigated by strong tenants
and sponsor 75% LTV
70% occupied by Fresenius Medical (BB by S&P) 10 year leases
Value Place Extended Stay – Wichita West
Wichita, KS
Description: 121 Units, 43,403sf, built in 2006Loan Amount: $4,200,000Term: 5 YearsAmortization: 25 YearsRate: 6.75%Lender: Business Partners (Credit Union)Recourse: Yes – Full RecourseClosed: February, 2008Comments: Represents one of a total of 5 Value
Place loans closed with the franchisor. No pre-payment penalty
Wycliff West Apartments
Overland Park, KS
Description: 150 Units, built in 1971Loan Amount: $5,250,000Term: 10 YearsAmortization: 30 YearsRate: 5.88%Lender: Freddie MacRecourse: NoneClosed: August, 2008Comments: Early rate locked in 5/08 – closed
8/08 Monthly replacement reserves - deferred
Strong Management Company & sponsor 64% LTV
Sunset Village Apartments
Pine Bluff, AR
Description: 144 Units, built in 1971Loan Amount: $2,744,000Term: 7 YearsAmortization: 30 YearsRate: 6.18%Lender: FNMARecourse: NoneClosed: June, 2008Comments: Repeat FNMA borrower Acquisition
Strong Management Company & sponsor 82% LTTP / 80% LTV
Yarco Office Building
Kansas City, MO
Description: 25,250sf, Single TenantLoan Amount: $1,900,000Term: 10 YearsAmortization: 25 YearsRate: 6.38%Lender: Protective LifeRecourse: Yes – Full RecourseClosed: July, 2008Comments: owner occupied No lease was required.
Subject was newly renovated Rate locked at application
Carriage House Apartments
Topeka, KS
Description: 282 Units, built in 1969Loan Amount: $4,600,000Term: 7 YearsAmortization: 30 YearsRate: 6.23%Lender: FNMARecourse: NoneClosed: July, 2008Comments: Repeat FNMA sponsor Acquisition
80% LTPP / LTV