Every one of these six classes sits at roughly 65% permanent leverage. The difference is coverage: 1.25x on industrial versus 1.40x on hospitality and seniors housing. Sponsors argue leverage; lenders decide on coverage, and the gap between those two conversations is where most negotiations actually happen.
A sponsor who understands that the real constraint is 1.40x DSCR, not 65% LTV, negotiates from a stronger position, because they're arguing about the number that actually governs.
70% LTC on bridge against 65% on perm, the only asset class on this page where that's true, because fill-up is predictable in a way lease-up elsewhere isn't. A storage facility's absorption curve is well-documented across thousands of comparable facilities; a hotel's re-flag ramp or an office building's lease-up is not.
It's a small detail, but it's the kind of thing that signals we actually underwrite the asset class rather than apply a generic bridge template to it.
Hospitality and seniors housing both carry the highest coverage floors on this page, 1.40x, for the same reason: the revenue is operational, not contractual. A hotel's RevPAR and a memory-care facility's census can move faster than a lease roll can, so lenders demand more cushion.
That's the bridge to the next tier of going-concern underwriting entirely, gas stations, truck stops and other operating businesses, where the real estate is almost incidental to the credit decision.
Underwriting and real options at no cost. A senior originator, not a queue.
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