Evaluating Today’s Financing Options

Lending Options in Today’s Market

Chris ChristiansenSenior Vice President – Bank of America Merrill Lynch

Global Commercial BankSalt Lake City, UT 84111

801.526.5656chris.christiansen@baml.com

•Life Companies•Bank Financing•Hard Money

•Friends & Family

Real Estate Financing Options:

Where does your property and / or borrower fit?

Bucket #1Owner Occupied Properties

Typically funded by banks looking for a broader relationship

• Multi-purpose• Special Use

Bucket #2Non-Owner Occupied (Investor Properties)

Transactional relationship

• Single Tenant • Multi-Tenant

• Mixed Use vs. Single Use

Bank Financing Consists of 2Buckets:

What’s Important to a lender:1. Property type2. Strength of the borrower3. Deal size

A CRE Broker can add tremendous value by positioning the appropriate lender

Loan Type Conventional Real Estate Loan SBA 504 Real Estate Loan

Loan Size $250,000 – $15,000,000 $350,000-$13,750,000 (1) total project costs

Use of Proceeds

Refinance, purchase and/or improvement of OOCRE • Build, purchase or improve (OOCRE) • Refinance of existing SBA 504 first deed of trust • Equipment with usable life in excess of 10 years (e.g.,

printing press)

Construction Yes Yes

Management Experience

Prior industry management and ownership experience preferred

Prior industry management and ownership experience preferred

Down Payment

20% 10-20% depending on property

Amortization OOCRE 15, 20 or 25 years OOCRE up to 25 years

Term 5, 7, 10, 15 or 20 years Up to 20 years

Fees Negotiable Many eligible to be financed

Rates Contact your Bank of America Merrill Lynch client manager or business development officer

Contact your Bank of America Merrill Lynch client manager or business development officer

Prepayment Fees

May be applicable under certain fixed-rate options May be applicable under certain fixed-rate options

Sweet Spot: Owner Occupied Properties

Whether it’s pursuing co-marketing opportunities or developing quick, innovative financing solutions for your clients, you can depend on Bank of America Merrill Lynch to achieve your goals.

Know your lender:•What is their sweet spot?•Deal size constraints / parameters?• Property type constraints •Concentrations?•Are they partial to certain industries?

Bank of America Merrill Lynch•Owner Occupied / Investor Properties on a case by case basis•Single resource for SBA or Conventional financing for $250K to $15MM• Prefer multi-use but will finance some special-use properties •Industries: Manufacturing, Healthcare, Distribution, Professional Services

Lending Options in Today’s Market

Chris ChristiansenSenior Vice President – Bank of America Merrill Lynch

Global Commercial BankSalt Lake City, UT 84111

801.526.5656chris.christiansen@baml.com

Thank you

A Community Banker’s View on Lending

Maryann Mize, CCIMCharlotte State Bank & Trust

mmize@csbtfl.com

Community Banks less than $10B represent

90%

84:1

85:1

86:1

87:1

88:1

89:1

90:1

91:1

92:1

93:1

94:1

95:1

96:1

97:1

98:1

99:1

00:1

01:1

02:1

03:1

04:1

05:1

06:1

07:1

08:1

09:1

10:1

11:1

12:1

13:1

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Assets > $10 Billion

Assets $1 Billion - $10 Billion

Assets $100 Million - $1 Billion

Assets < $100 Million

Commercial Real Estate Loans as a Percent of Total Assets

CRE Historic Basis:

Communty Banks

have had a role

Source: fdic.gov

84:1

85:1

86:1

87:1

88:1

89:1

90:1

91:1

92:1

93:1

94:1

95:1

96:1

97:1

98:1

99:1

00:1

01:1

02:1

03:1

04:1

05:1

06:1

07:1

08:1

09:1

10:1

11:1

12:1

13:1

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

Assets > $10 Billion

Assets $1 Billion - $10 Billion

Assets $100 Million - $1 Billion

Assets < $100 Million

Noncurrent Assets Plus Other Real Estate Owned to Total Assets

CRE Troubled

Assets Overall

is declining

Source: fdic.gov

Overall: low Loan To

Deposit Ratio’s means

money to lend,

including CRE

CRE Lending

Overall is up since

2010

A Community Banker’s View on Lending

Maryann Mize, CCIMCharlotte State Bank & Trust

mmize@csbtfl.com

Questions?

Evaluating Today’s Financing Options

Thank you!