This section captures essential identification details for the borrowing entity and the subject property to establish legal and geographic context for the collateral assessment. Accurate identification is critical for title verification, regulatory compliance, and risk segmentation.
Borrower Legal Entity Name
Borrower Entity Structure
Limited Liability Company
Corporation
Limited Partnership
General Partnership
Trust
Real Estate Investment Trust
Other
Entity Registration/Incorporation Number
Primary Jurisdiction of Incorporation/Registration
Borrower Tax Identification Number
Registered Address of Borrower Entity
Primary Contact Person Full Name
Primary Contact Official Title
Primary Contact Direct Email
Primary Contact Direct Phone
Ultimate Beneficial Owner (UBO) Information - Provide details of individual(s) with ultimate beneficial ownership of 25% or more. This is required for anti-money laundering compliance and risk assessment.
UBO Full Name(s), Ownership Percentage(s), and Nationality
Are there any trusts, nominee arrangements, or intermediary entities in the ownership structure?
Is the borrowing entity a special purpose vehicle (SPV) formed solely to own this property?
Property Location & Legal Identification - Precise geographic and legal identification enables accurate title search, environmental mapping, and regulatory jurisdiction determination.
Property Street Address
Legal Description of Property
Parcel/Plot/Lot Identifier Number
Property Tax Identification Number
Latitude (Decimal Degrees)
Longitude (Decimal Degrees)
Property Type Classification
Office Building
Retail Shopping Center
Industrial/Warehouse
Multifamily Residential
Hotel/Hospitality
Mixed-Use Development
Healthcare Facility
Self-Storage
Special Purpose
Land/Development Site
Other
Total Land Area (Square Meters)
Total Building Gross Floor Area (Square Meters)
Year of Original Construction
Has the property undergone major renovations, expansions, or alterations?
Current Ownership Interest Type
Fee Simple Absolute
Leasehold Interest
Ground Leasehold
Joint Tenancy
Tenancy in Common
Condominium Interest
Other
Current Property Owner Legal Name(s) (if different from borrower)
Is this a purchase transaction or refinance of existing debt?
Date of Property Acquisition (if purchase transaction)
Current Property Use and Occupancy Description
Are there any existing liens, encumbrances, or easements affecting the property?
Property Management Company Name (if applicable)
This section documents the independent appraisal report details and valuation analysis to determine the property's fair market value, support loan-to-value calculations, and assess valuation risk factors inherent in multi-million dollar transactions.
Appraisal Firm Legal Name
Certified Appraiser Name and Professional License/Credential Number
Appraisal Report Date
Appraisal Report Reference Number
Is the appraiser independent and without conflict of interest relative to borrower or lender?
Valuation Approaches Utilized in Appraisal (select all that apply)
Sales Comparison Approach
Income Approach
Cost Approach
Residual Land Value Method
Discounted Cash Flow Analysis
Other
Appraised 'As-Is' Market Value
Appraised 'As-Stabilized' or 'Upon Completion' Value (if development/repositioning)
Land Value (as allocated in appraisal)
Improvements Value (as allocated in appraisal)
Value per Square Meter of Gross Building Area
Income Approach Details - Critical for income-producing properties to verify capitalization rate reasonableness and income sustainability.
Overall Capitalization Rate Applied (%)
Annual Net Operating Income (NOI) Utilized
Vacancy and Collection Loss Rate Assumed (%)
Income Approach - Operating Expense Breakdown
Expense Category | Annual Amount | Expense per SqM | Notes | |
|---|---|---|---|---|
Property Taxes | $125,000.00 | 8.33 | Based on current assessment | |
Insurance | $45,000.00 | 3 | Replacement cost coverage | |
Utilities | $38,000.00 | 2.53 | Common area utilities | |
Management Fees | $52,000.00 | 3.47 | 3% of effective gross income | |
Maintenance & Repairs | $65,000.00 | 4.33 | Routine maintenance reserve | |
Comparable Sales Analysis - Provide details of primary comparable properties used in the appraisal to support market value conclusion.
Comparable Sales Summary
Comparable ID | Property Address | Property Type/Class | Sale Price | Sale Date | Building Area (SqM) | Price per SqM | Distance from Subject (Km) | Adjustment Factors | |
|---|---|---|---|---|---|---|---|---|---|
Comp 1 | 123 Comparable Street | Class A Office | $12,500,000.00 | 3/15/2024 | 12000 | 1041.67 | 2.5 | Superior location, newer building +5% | |
Comp 2 | 456 Similar Avenue | Class B Office | $9,800,000.00 | 1/20/2024 | 9500 | 1031.58 | 1.8 | Similar age, inferior condition -3% | |
Comp 3 | 789 Benchmark Boulevard | Class A Office | $11,000,000.00 | 5/10/2024 | 10500 | 1047.62 | 3.2 | Comparable location, similar condition 0% | |
Market Conditions and Trends Affecting Valuation
Overall Quality and Reliability of Appraisal Report
Poor
Below Average
Average
Above Average
Excellent
Does the appraisal identify any extraordinary assumptions or hypothetical conditions?
Highest and Best Use Analysis Summary
Are there any material factors that could negatively impact property value during the loan term?
Has a sensitivity analysis been performed on key valuation variables?
This section documents the Phase I Environmental Site Assessment findings to identify recognized environmental conditions (RECs) that could affect property value, create lender liability, or require costly remediation. Thorough environmental due diligence is essential for high-value commercial real estate collateral.
Environmental Consulting Firm Legal Name
Environmental Professional Name and Credential/Registration Number
Phase I ESA Report Date
ESA Report Reference Number
Does the Phase I ESA conform to recognized industry standard practice?
Historical Use Analysis - Comprehensive review of past property uses through aerial photographs, city directories, fire insurance maps, and title records to identify potential contamination sources.
Summary of Historical Property Uses (past 50+ years)
Were any historical uses identified that are typically associated with environmental concerns?
Does the ESA identify any Recognized Environmental Conditions (RECs)?
Are there any Controlled Recognized Environmental Conditions (CRECs) or Historical Recognized Environmental Conditions (HRECs)?
Adjacent and Surrounding Property Assessment - Evaluation of nearby properties that could impact subject property through contaminant migration or regulatory action.
Do adjacent or nearby properties have known or suspected environmental contamination?
Are there any active or closed landfills, waste disposal sites, or major industrial facilities within 1 kilometer?
Regulatory Database and Records Review - Comprehensive search of federal, state/provincial, and local environmental databases for cleanup sites, spills, violations, and enforcement actions.
Which regulatory database categories were reviewed? (select all that apply)
Environmental cleanup/remediation sites
Underground storage tank records
Aboveground storage tank records
Registered hazardous waste handlers
Landfill and solid waste facilities
Spill and release reports
Water discharge permits
Air quality permits
Property transfer records
Environmental liens and activity use limitations
Other
Were any environmental violations, incidents, spills, or cleanup activities identified in database searches?
Site Reconnaissance and Physical Observations - Field inspection findings for evidence of contamination, hazardous materials storage, and environmental stress indicators.
Was physical evidence of contamination observed during site reconnaissance?
Are there any above-ground or underground storage tanks (ASTs/USTs) on the property?
Is asbestos-containing material (ACM) present in building materials based on survey?
Is lead-based paint (LBP) present in pre-1980 constructed buildings?
Are there any polychlorinated biphenyls (PCBs) in building materials or electrical equipment?
Is mold, moisture intrusion, or water damage evident in the building?
Is radon testing recommended or required based on geographic location and building characteristics?
Are there any wetlands, floodplains, or water bodies on or adjacent to the property?
Does the ESA recommend Phase II Subsurface Investigation (soil/groundwater testing)?
Is there potential for vapor intrusion of subsurface contaminants into occupied buildings?
Have environmental liens or activity use limitations (AULs) been recorded against the property?
Estimated Cost Range to Remediate Identified Environmental Concerns
Is environmental insurance or borrower indemnification available to address contamination risk?
Overall Environmental Risk Rating for This Property
Very Low Risk
Low Risk
Moderate Risk
High Risk
Very High Risk
This section verifies compliance with zoning ordinances, building codes, and occupancy requirements that affect property use, value, marketability, and legal permissibility of current and future operations.
Zoning Authority/Jurisdiction Name
Current Zoning District Classification
Permitted Principal and Accessory Uses Under Current Zoning
Is the current property use permitted 'by-right' without special approvals?
Are there any active zoning violations, enforcement actions, or pending complaints?
Required Zoning Setbacks (Front, Rear, Side) in Meters
Do all existing structures comply with required setbacks?
Maximum Floor Area Ratio (FAR) Allowed by Zoning
Existing Floor Area Ratio (FAR) of Developed Property
Maximum Building Height Allowed (Meters)
Existing Building Height (Meters)
Minimum Parking Spaces Required by Zoning
Existing Parking Spaces Provided On-Site
Does parking supply comply with zoning requirements?
Is the property classified as a legal non-conforming use or structure?
Building Code Edition Under Which Property Was Originally Constructed
Current Applicable Building Code Edition
Does the property have a valid Certificate of Occupancy for the current use?
Are there any open, expired, or unresolved building permits?
Has the property been cited for any building code violations or orders to remedy?
Are fire suppression, alarm, and life safety systems compliant with current codes?
Does the property comply with accessibility standards for persons with disabilities?
Does the property comply with current energy conservation codes and standards?
Does the property have any green building or sustainability certifications?
Are there planned renovations, expansions, or new developments requiring zoning approvals?
Overall Zoning and Code Compliance Risk Rating
Very Low Risk
Low Risk
Moderate Risk
High Risk
Very High Risk
This final section captures loan structuring details, comprehensive risk assessment, approval conditions, and formal sign-off by authorized credit risk management personnel with executive lending authority for multi-million dollar exposures.
Requested Loan Amount
Proposed Loan Amount as Percentage of 'As-Is' Appraised Value (LTV Ratio)
Loan-to-Value Ratio (LTV) Based on 'As-Is' Appraised Value (%)
Loan-to-Value Ratio (LTV) Based on 'As-Stabilized' Value (if applicable) (%)
Debt Service Coverage Ratio (DSCR) - Stabilized
Debt Yield (NOI divided by Loan Amount) (%)
Proposed Loan Term
1-3 Years (Bridge)
3-5 Years (Mini-Perm)
5-7 Years (Medium Term)
7-10 Years (Long Term)
10+ Years (Fully Amortizing)
Interest Only with Balloon
Interest Rate Structure
Fixed Rate for Full Term
Variable Rate (Index + Spread)
Hybrid Fixed/Variable (Fixed for initial period)
Floating Rate with Cap/Collar
Interest Only
Proposed Interest Rate or Spread over Index (%)
Comprehensive Risk Assessment Matrix - Evaluate each risk category based on due diligence findings.
Risk Factor Assessment - Rate each risk dimension
Very Low | Low | Moderate | High | Very High | |
|---|---|---|---|---|---|
Environmental Risk (based on Phase I ESA findings) | |||||
Market/Location Risk (supply/demand, economic base) | |||||
Property Condition and Deferred Maintenance Risk | |||||
Zoning/Regulatory and Code Compliance Risk | |||||
Tenant Credit and Lease Rollover Risk | |||||
Interest Rate and Refinancing Risk | |||||
Liquidity and Marketability Risk | |||||
Construction/Development Risk (if applicable) | |||||
Concentration Risk (borrower, tenant, geographic) | |||||
Legal and Title Risk |
Environmental Risk Mitigation and Loan Structuring
Will environmental insurance be required as a condition precedent to loan closing?
Will borrower be required to provide environmental indemnification in loan documents?
Are there any material environmental conditions that could trigger loan default or require immediate remediation?
Will Phase II ESA be a condition precedent to loan funding or future funding tranches?
Should environmental monitoring and reporting be required during loan term?
Approval Conditions and Ongoing Monitoring Requirements
Select all conditions precedent to initial loan closing:
Satisfactory Phase II ESA results
Environmental insurance policy with lender as loss payee
Zoning compliance certificate from authority
Updated appraisal with no material changes
Building code inspection certificate
Tenant estoppel certificates for major tenants
Title insurance with environmental endorsements
Remediation completion with regulatory closure
Asbestos/lead survey and management plan
Proof of green building certification
Other material conditions
Are there any post-closing or future advance conditions?
Are there ongoing financial reporting or operational compliance monitoring requirements?
Key Risk Mitigation Strategies and Contingency Plans
Does this loan exceed single borrower or internal lending limit requiring Credit Committee or Board approval?
Are there any exceptions to bank policy or deviations from standard underwriting criteria?
Special Conditions, Waivers, or Borrower Representations
Chief Credit Officer Sign-Off and Attestation - Final certification that all material risks have been identified, assessed, and appropriately mitigated through loan structure and conditions.
Chief Credit Officer Full Legal Name
Chief Credit Officer Official Title
Sign-Off Date and Time
I attest that I have reviewed all due diligence materials and that all material risks have been identified and appropriately mitigated in the loan structure and approval conditions
I confirm that the independent appraisal and environmental assessment are reliable, current, and prepared by qualified professionals
I approve this loan recommendation as presented, subject to the conditions and covenants outlined above
I confirm that this loan complies with internal credit policy and regulatory requirements or that appropriate approvals for exceptions have been obtained
Chief Credit Officer Digital Signature
Additional Risk Management Comments or Recommendations