Extract to table

This gap represents the single most significant financing risk in the transaction and must be addressed before Pinnacle Federal Savings Bank issues a formal term sheet

The preferred equity position must be structured so as not to conflict with Pinnacle's single-purpose entity covenants, and any remedial rights of the preferred equity holder must be subordinated to, or at minimum coordinated with, the senior lender's remedies

This expiration must be prominently disclosed to Pinnacle in our lender submission package and will be a significant underwriting consideration

The DSCR gap of approximately $418,800 in debt service terms (the difference between actual debt service of $5,986,800 and the maximum supportable debt service of $5,568,000) — or equivalently approximately $523,500 in incremental NOI needed above current levels — represents a challenge that must be addressed through one or more of the strategies discussed in Section V below

Anticipated Lender Requirements Based on our experience with Pinnacle and with CRE lenders generally for transactions of this size and type, we anticipate that the senior loan documentation will require or include the following: Borrower Structure: The loan will be made to BFO 450 West 34th LLC, which must be organized and maintained as a single-purpose entity ("SPE")

The lender's policy must include standard New York endorsements, including ALTA 9