floor loan


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floor loan

The minimum amount a lender will fund on an approved loan,with the balance payable if and when the borrower meets certain conditions,such as minimum occupancy levels or preleasing.If the borrower fails to meet the requirements,the borrower will have to secure gap financing or mezzanine financing in the interim,which can be extremely expensive.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Jack Houlihan of Houlihan-Parnes Realtors has arranged an $8.8 million first mortgage on an approximately 175,000 square-foot office building in Rockleigh, NJ, with a $7.5 million floor loan having been funded at closing.