Property Description
The property description section of the loan request package is where
a lender can find a complete physical description of the land and all
of the improvements, including visual aids such as photos, site
plans, floor plans, building plans, surveys, and aerials. Unlike the
executive summary, which highlights basic property information
(e.g., address, property type, number of units, square footage [SF],
age), this section is more descriptive. Property and site details such
as lot size, site and building amenities, zoning, recent renovations,
planned renovations, construction details, anchor tenants, gross
building square feet, and net rentable square feet should all be thor-
oughly covered in this section. Gross building square feet is the size
of the building measured from the surface or face of the exterior
walls, whereas net rentable square feet is the total of all usable air-
conditioned interior space. Net rentable square feet can be found in
either the rent roll or leases. There is no right or wrong way to pre-
pare this section, but what is important is to list as much informa-
tion and to describe the property as fully as possible. Experience and
time are the best teachers as to the type and quantity of information
one should include in this section. Since there are many different
types of properties, it would be difficult to list each and every physi-
cal component of each property type, but a general rule is to think
like a buyer. A buyer would not purchase without first inspecting the
property and neither would a lender, so try to be as descriptive as pos-
sible concerning the building components. The lender may have to
foreclose on the property someday and wants to know everything
about the physical condition of the collateral, as well as the financial
condition. Following is a general list of property and site details and
visual aids commonly found in the property description section:
Preparing the Loan Request Package
Property and Site Details
? Property name and physical address
? Property type (e.g., apartments, retail, office, self-storage
? Number of units or total net rentable SF
? Occupancy
? Year built/year renovated, expanded, remodeled
? Number of tenants
? Average apartment unit size in SF or average tenant space
size in SF
? List of anchor tenants (e.g., the grocer anchor in a retail
shopping center)
? List of tenants occupying more than 20% of the total space
? Site/land details
Purchase price
Total SF or acreage
Shape, layout, and general dimensions
Ingress and egress
Visibility and signage
Easements or deed restrictions
Roads and shared driveways
Excess land
? Construction details
Configuration, design features, functional utility
Number of buildings
Building height (number of stories)
Type of roof (flat, pitched)
Mechanical and electrical systems
Type of heating and air-conditioning systems
Public utilities
Commercial Mortgages 101

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