UC Funds Introduces New Real Estate Financing: 85 Percent Loan to Value Ratio

BOSTON– UC Funds, which originates, structures, underwrites and asset manages commercial real estate investments, introduced the lowest rate and most competitive commercial mortgage product available in commercial real estate, the company said in a statement.

UC Funds’ new UC GO non-recourse commercial mortgage bridge loan is now available at 85 percent loan to value (LTV) and 0.5 debt service coverage ratio (DSC). The variable rate non-recourse product, which starts at LIBOR +350, is available for loans as little as $5 million.

“In the current market environment, commercial real estate developers and owners are clamoring for UC GO because of its extreme competitiveness and non-bank restrictions and contingencies,” says Dan Palmier, President and CEO of UC Funds. “Many projects which were funded right after the recession are now cash flowing and able to meet our reduced debt service at an LTV that can provide for a wide range of future refinancing options and

Dan Palmier

alternatives. In that regard, UC GO completes UC Funds’ capital solutions for commercial real estate products across a broad spectrum of needs and uses, which solidify UC Funds as a one-stop shop for commercial real estate financing. UC GO further allows us to provide tools that will help customers through each aspect of their product’s lifecycle, from construction loans through permanent financing.”

Using UC Funds’ state of the art technologies and an integrated team of Boston-based analysts and underwriters, borrowers can expect term sheet to closing in an average of 30 days. UC Funds’ infrastructure and thorough project-vetting approach also allows for higher reliability with over 98 percent of applications being approved. In today’s tight lending environment, UC GO’s approval, speed, and flexibility in financing is critical for developers to ensure that their assets stay profitable while their assets continue to stabilize.

“For investors, UC GO offers the superior returns of equity with the lower risk of debt,” continues Palmier. “The program starts with an initial $1 billion of capitalization from both UC Funds, prominent outside institutions, as well as real estate developers who are past UC Funds borrowers. Their investments speak volumes about UC Funds’ expertise, relationships, and integrity in real estate financing and our ability to create attractive returns that complement those of development. We’ve already received an overwhelming number of inquiries.”

While most commercial mortgage products provide between 60 and 75 percent LTV, UC GO is able to provide an 85 percent LTV. UC GO’s 0.5 DSC is twice as competitive as similar products on the market.

Founded in 2010 by Dan Palmier, UC Funds is a vertically integrated specialty finance firm that originates, structures, underwrites, and asset manages commercial real estate investments. A national balance sheet provider of both debt and equity capital solutions, UC Funds has provided over $1 billion of capital solutions to date.

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