Legacy Real Estate Finance

Legacy Banks has been serving the financial needs of the Berkshire County community for well over 100 years. In late 2001, Legacy Banks established a new national commercial real estate finance division - Legacy Real Estate Finance (LREF). Legacy Real Estate Finance consists of the investment and management of commercial mortgage small loan assets outside of Berkshire County.

The Legacy Real Estate Finance program guidelines are first mortgage loans on high quality, institutional grade income property real estate ranging in size from $500,000 to $5 million dollars, with preference in the $500,000 to $3 million size range.

There are two primary LREF lending programs:

• Adjustable Rate: 20-year amortization, 12-year term with interest rate adjustments every three (3) years based upon the Federal Home Loan Bank Boston rate schedule or 10-year term with interest rate adjustment every five (5) years based upon the Federal Home Loan Bank Boston rate schedule.

• Fixed Rate: Either a 20-year amortization with a 5- or 10-year term; or a 15-year fully amortizing term.
  

Legacy Real Estate Finance's maximum loan-to-value is 70% and the minimum debt service coverage requirement at 1.25 times (using a market or minimum 10% vacancy factor).

Legacy Real Estate Finance's mortgage loans are primarily secured by industrial / flex (warehouse, distribution, light manufacturing, research & development), office (general - with long term leases, medical - with doctor or hospital ownership), retail (neighborhood or suburban center-with anchor or credit tenants under long term leases), and multifamily properties (luxury or semi-luxury). LREF's preference is for multi-tenancy but in all cases properties are to be adaptable to multi-tenancy.

Although the lending program is national in scope, at the present time Legacy Real Estate Finance works exclusively through the following designated mortgage correspondents who originate and service the loans on behalf of Legacy Banks: