Freddie Mac’s Lease-Up Execution*
offers borrowers the ability to rate lock their permanent loan on a new or
substantially rehabilitated property months before the property stabilizes.
Depending on the property, two executions are available. These provide between
12 and 18 month early rate locks. Occupancies may be as low as 40% in better
markets. After rate lock, properties have up to 24 months to reach stabilization
and must sustain these levels for 6 months. In conjunction with Freddie Mac’s
other financing solutions, the Premier and Standard Lease-Up Executions can help
developers time their permanent financing to capture the best rates.
PNC ARCS is one of America’s leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America’s leading Fannie Mae DUS™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers’ needs.
The company is now the single
source for all real estate financing across the full range of commercial
property types.
Beyond the benefits of any specific
lending product, PNC ARCS’ experience, expertise and unwavering commitment to
extraordinary customer service are what set us apart from the rest. No one
delivers more.
*Available in CA, HI, NJ , NY and
southern CT. Geographic waivers are available on a case-by-case basis. Contact
your loan representative for more information
Product Overview
Eligibility
For market rate newly constructed or substantially renovated properties in lease-up
Term/Amortization All loan terms are eligible. Up to 30 year
amortization or Interest Only.
Commitment Period
Up to 12 months (standard)
Up to 18 months (premier)
Rate Lock Locks at breakeven occupancy (standard) Locks at
40% occupancy (premier)
Minimum Occupancy Requirement
90% for 90 days (standard) Percentage equal to 1.05% DCR
(premier)
Loan Enhancement
Letter of credit or guarantee required
Term of loan Enhancement Up to 24 months to reach stabilization
Release of Loan Enhancement Must
sustain underwritten occupancy and rent levels for 6 months
Available only in select regions. Contact us to find out if your property qualifies.