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This memorandum is a privileged and confidential attorney-client communication prepared by Calderwood & Harkness LLP for the exclusive use of the addressees identified herein. This memorandum is protected by the attorney-client privilege and the work product doctrine and should not be disclosed to any third party without the prior written consent of Calderwood & Harkness LLP and the client. The analysis and recommendations set forth herein are based on information available as of the date of this memorandum and are subject to change based on developments in the transaction, market conditions, and the ongoing negotiation process.
SPE Borrower | Property Name | City, State | Units | Year Built | Appraised Value | Allocated Loan Amount
Fairwater Sun Belt I LLC | Ridgewater at Lakeline | Austin, TX | 320 | 2018 | $32,500,000 | $20,259,740
Fairwater Sun Belt II LLC | Sagebrush Commons | San Antonio, TX | 288 | 2016 | $24,800,000 | $15,461,039
Fairwater Sun Belt III LLC | Cypress Bend | Katy, TX | 340 | 2019 | $30,200,000 | $18,826,494
Fairwater Sun Belt IV LLC | Willowbrook Terrace | Sugar Land, TX | 310 | 2017 | $29,100,000 | $18,140,779
Fairwater Sun Belt V LLC | Heritage at Stonebriar | Frisco, TX | 342 | 2020 | $35,800,000 | $22,316,883
Fairwater Sun Belt VI LLC | Peachtree Crossings | Alpharetta, GA | 296 | 2015 | $28,600,000 | $17,829,091
Fairwater Sun Belt VII LLC | Cumberland Ridge | Smyrna, GA | 264 | 2014 | $24,200,000 | $15,087,013
Fairwater Sun Belt VIII LLC | Sugarloaf Station | Duluth, GA | 260 | 2016 | $23,400,000 | $14,588,571
Fairwater Sun Belt IX LLC | Bayshore Landings | Tampa, FL | 308 | 2017 | $33,800,000 | $21,069,870
Fairwater Sun Belt X LLC | Solara at Millenia | Orlando, FL | 292 | 2018 | $30,600,000 | $19,075,714
Fairwater Sun Belt XI LLC | Riverside Preserve | Jacksonville, FL | 260 | 2015 | $22,400,000 | $13,964,935
Fairwater Sun Belt XII LLC | Stonewall Flats | Charlotte, NC | 284 | 2019 | $28,200,000 | $17,580,000
Fairwater Sun Belt XIII LLC | Crabtree Pointe | Raleigh, NC | 256 | 2017 | $26,400,000 | $16,458,701
Fairwater Sun Belt XIV LLC | Harpeth Valley | Nashville, TN | 380 | 2021 | $15,000,000 | $9,341,169
TOTAL | 4,200 | $385,000,000 | $240,000,000
Term Sheet Section | Revision Description | Review Memo Reference | Priority
8 (Amortization) | Confirm 30/360 payment basis | Section III.B | Informational
11 (Recourse) | Narrow carve-outs; limit full-recourse triggers; add materiality/knowledge qualifiers; waste carve-out; environmental indemnity non-duplication | Section V.B | High
12 (Cash Management) | Springing lockbox with DSCR trigger instead of hard lockbox | Section V.A | Highest
13 (Reserves) | Reduce CapEx reserve or make springing; eliminate leasing commission reserve; limit upfront deposits; credit for prepaid items | Section V.F | Medium
14 (Defeasance) | Confirm mechanics; add partial defeasance/release right with release premiums of 110%–115% of allocated loan amount | Section V.H | High
16 (Rate Lock Deposit) | Interest-bearing escrow; borrower-favorable refundability terms; cap lender retention on borrower default | Section V | Medium
17 (SPE Requirements) | One independent director only; borrower selects; limited consent scope; REIT Distribution Exception; tax compliance protection | Sections V.C, V.G | High
18 (Transfer Restrictions) | Permitted intra-REIT transfers; NYSE stock exclusion; narrow change of control; one-time assumption right; mezzanine financing reservation | Section V.D | High
19 (Casualty/Condemnation) | $5M / 15% threshold for lender's right to apply proceeds; restoration timeline; carve-out guaranty interaction | Section V.E | High
20 (Reporting) | Delivery timeframes (120/60/30 days); consistency with SEC filings; electronic delivery; no budget approval rights | Sections V.G, V.I | Medium
21 (Conditions Precedent) | Acquisition-date report acceptability; 75% estoppel threshold; SNDA limited to commercial leases; affiliated manager pre-approval | Section V.J | Medium
22 (Securitization) | Borrower protections survive securitization; accepted servicing practices standard | Section VI.B | High
Exhibit A (Property Schedule) | Addition of property schedule with allocated loan amounts for partial release calculations | Appendix B | Informational