How to use
Use this template as the foundation for the package you send to the curated lender list when running a bake-off. The objective is one document, one deadline, one set of questions, so the responses come back comparable. Customize for the deal; redact sponsor-confidential information appropriately.
Cover summary
One page, top of the package. The lender's deal team should be able to triage in under 2 minutes.
- Property name, address, asset class, year built, square footage / unit count.
- Sponsor name and one-line description of platform and track record.
- Capital request, loan amount, term, structure, use of proceeds.
- Timeline, target term sheet date, target closing date, any hard deadlines.
- Response deadline, date and time, with response format (term sheet PDF, redlined to template).
Property and submarket
Lenders price relative to comparable assets in the submarket. Provide the data to support the underwriting before they ask.
- Building specs and amenity summary.
- Submarket overview, current vacancy, asking rents, recent sales comps.
- Trailing operating performance. T-12 NOI, occupancy, expense ratio.
- Rent roll snapshot, top tenants, WALT, expirations.
- Capex history and forward capex plan.
Sponsor and key principal
Lender sizing depends as much on sponsor strength as on property fundamentals. Pre-empt the lender's diligence with a clean profile.
- Platform overview, AUM, asset focus, geographic footprint.
- Key principal bios, track record, similar transactions closed.
- SREO summary, current portfolio with status (stabilized, under construction, in workout).
- REO experience and any prior loan defaults or restructures (pre-empt, full disclosure beats lender discovery).
- Credit references, prior lenders willing to give references.
Capital structure and use of proceeds
Be specific about how the loan proceeds will be deployed and how the rest of the capital stack is contemplated.
- Sources and uses table, debt, equity, sponsor co-invest, mezz/PE if applicable.
- Equity commitment letters or LOIs from co-investors.
- Hold period and exit strategy, refinance at stabilization, sale at year 5, etc.
- Pro forma DSCR and debt yield at stabilization.
Term sheet questions, required fields
Standardize the questions every responding lender must answer, in the same format. This is what makes the bake-off comparable.
Required term-sheet response fields
| Field | Format | Notes |
|---|---|---|
| Loan amount | $ and % LTV | Quote both proceeds and LTV; identify binding test. |
| Spread | bps over index | Identify index (Treasury, SOFR, swap). |
| All-in rate | % | Net of any discounts; locked or estimated. |
| Term | Years | Including extensions and option fees. |
| Amortization | Years / IO period | Specify partial-IO, full-IO, full-amort. |
| Recourse | Full / partial / non-recourse | Burn-off mechanics if partial. |
| Prepayment | Menu | Yield maintenance, defeasance, declining %, open. |
| Origination fee | % | Plus dollar amount. |
| Reserves | Upfront and ongoing | TIE, T&I, replacement, capex. |
| Cash trap | Trigger and cure | DSCR / DY thresholds and mechanics. |
| MAC clause | Tightened or standard | Lender position. |
| Closing timeline | Days from term sheet | Confirm credit committee schedule. |
Process logistics
Define the process so lenders know the rules and don't lose deals to miscommunication.
- Single point of contact at sponsor / advisor for all questions.
- Diligence portal access (data room link or instructions).
- Q&A protocol, questions submitted by date X, answered to all bidders.
- Award timeline, winner selected by date Y, exclusivity granted at award.