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HomeMy WebLinkAboutSolomon Towers PGIM Letter of Intent Alex Viorst Principal PGIM Real Estate 4350 North Fairfax Drive, Suite 700 Arlington, VA 22203 Cell 202.361.6713 alex.viorst@pgim.com July 31, 2024 Mr. Scott Coggins Vice President Ulysses Development Group 210 University Blvd, Suite 460 Denver, CO 80206 Dear Mr. Coggins: PGIM Real Estate Agency Financing, LLC (PREAF) is pleased to offer this Letter of Intent for the proposed construction and permanent financing of Solomon Towers utilizing the FHA 221(d)(4) loan product. This LOI is intended to advise all interested parties that PREAF, in its capacity as an FHA lender, intends to secure an FHA loan for this multifamily property. Specific transaction terms are as follows: FHA Mortgage Insurance Program: Section 221(d)(4) SR of the National Housing Act Property Name: Solomon Towers Property Address: 15 Castle Street, Wilmington, NC 28401 Proposed Loan Amount: $6,188,600. The final loan amount will not be set until the interest rate is locked. Current Estimated Interest Rate: 5.90% Loan Term and Amortization Period: Forty years + construction. PREAF Financing Fee: 1.00% of the Loan Amount. FHA Fees: 0.80% of the Loan Amount FHA Mortgage Insurance Premium: 0.25% of the Loan Amount Estimated Legal Fees: $60,000 at Initial Closing + $12,500 at Final Endorsement Federal Labor Standards: The general contractor and all subcontractors are required to comply with federal wage and reporting requirements, including the payment of Davis Bacon prevailing wages and the submission of weekly certified payroll reports. Solomon Towers – Wilmington, NC PGIM RE Loan Proposal 1 Construction Escrows: Various construction loan escrows, including but not limited to, Operating Deficit, Working Capital, and Offsite may be required to be established at Closing. Building Permits: Unconditional building permits for the proposed improvements will be required at Closing. PGIM Real Estate Agency Financing, LLC By: Name: Alex Viorst Title: Principal