Acquisition Loan Term Sheet
(Commercial Real Estate) (Pro-Borrower)

Summary

This is a template of an acquisition loan term sheet for use in a commercial real estate financing transaction. This template outlines the terms under which the lender will finance the borrower's acquisition of real property. This template includes practical guidance, drafting notes, and alternate clauses. For a full listing of key content covering acquisition financing, see Junior Associate Real Estate Resource Kit (Acquisition Finance). At the term sheet stage of a financing transaction, the parties negotiate many of the key terms that will govern the deal. Often, the lender then uses the final term sheet as a guide to prepare the loan documents. When reviewing the loan documents, the borrower and its counsel should regularly refer back to the term sheet to confirm that the lender's draft documents accurately reflect the terms that the borrower agreed to. This template favors the borrower and includes negotiating tips for both parties' counsel. Modify this template as needed to fit the specifics of your transaction, including any particular business needs of the borrower and/or additional requirements for the lender's underwriting process. For a pro-lender template of an acquisition loan term sheet to use in a transaction with a floating interest rate, see Acquisition Loan Term Sheet (Commercial Real Estate, Floating Rate) (Pro-Lender). For a pro-lender template of an acquisition loan term sheet to use in a transaction with a fixed interest rate, see Acquisition Loan Term Sheet (Commercial Real Estate, Fixed Rate) (Pro-Lender). For further guidance on negotiating acquisition loan term sheets, see Acquisition Loan Term Sheets and Loan Commitments. For further guidance on acquisition financing transactions, see Commercial Real Estate Acquisition Loan Resource Kit. For a full listing of Practical Guidance content relating to due diligence for commercial real estate financing, see Commercial Real Estate Financing Due Diligence Resource Kit.