Fifth Point Properties’ mission can be summed up very easily, to improve the quality of the Fraternity’s housing stock and make it a competitive advantage for our chapters. In the early history of the fraternal movement, housing was an important and defining part of the experience. When alumni speak of the fraternity experience many times they refer to living in the chapter home and their experiences there.
Unfortunately, today the experience may not be memorable for the right reasons. In some cases, due to many factors, the house corporation may decide that having a professional group own and/or manage the chapter home may be in the chapter’s best interest. Fifth Point Properties is uniquely positioned to meet that need, to protect and preserve the chapter home.
Fifth Point Properties has been there for several chapters where the house corporation has made the decision that an ownership transfer was necessary. Our goal is to facilitate the transfer as painlessly as possible, while keeping the best interest of the chapter and alumni in mind. While the “ownership” of the property may not be in the hands of the local house corporation, it is our philosophy to keep the chapter and alumni involved in the planning and management of the property. It is your chapter home, not Fifth Point’s!
The basic process usually involves:
To see if Fifth Point Properties would be a good partner for your chapter and house corporation, contact us via e-mail or by telephone at 540.463.1869.
DeLand, Florida (Stetson University)
Fifth Point acquired our Delta Mu Chapter home in 2006. Immediately following the
acquistion we worked to secure the house and to handle several deferred maintenance
issues. After the property was initially stabilized we have completed a total renovation
of the upstairs bathroom. A complete renovation of the property is being planned
East Lansing, Michigan (Michigan State University)
Fifth Point acquired the Epsilon Rho Chapter home in 2005. The chapter home has
since under gone a significant remodel of the bathrooms and the formal living area.
The electrical system has been improved, along with exterior improvements.
Mankato, Minnesota (University of Minnesota–Mankato)
Fifth Point acquired this property in 2007 for the Lambda Delta Chapter. This marks
the first time that Fifth Point Properties has acquired a property that was not
previously owned by the chapter.
Norman, Oklahoma (University of Oklahoma)
Fifth Point closed the acquition of the Delta Epsilon Chapter home in February 2009.
Tallahassee, Florida (Florida State University)
FFifth Point acquired the property in July 2008 for the Zeta Zeta Chapter. This
marks the second time Fifth Point has acquired a property that was not previously
owned by the chapter.
For more information on how Fifth Point Properties can help your chapter either through an ownership transfer or our property management services, please contact us via e-mail or by telephone at 540.463.1869.
Fifth Point Properties can offer lending support, both in assisting house corporations with debt financing opportunities; as well as, in some cases, direct debt financing is available on a funds-available basis.
One of the keys to successful chapter housing is finding the right financing for the purchase, construction, and/or renovation of chapter properties. With Fifth Point's expertise in fraternity housing and our contacts with financial institutions, we can be a great resource to local house corporations seeking to finance the purchase, construction, and/or renovation of chapter properties or for the refinancing of existing debt.
Acquiring commercial financing for Greek housing has historically been a long and difficult process. This is mainly due to the small market and commercial banks not being familiar with Greek housing. With Fifth Point Properties experience we can develop a customized loan application proposal and help to educate bankers on lending to Greek organizations. For more information, please contact us via e-mail or by telephone at 540.463.1869.
On a funds-available basis, Fifth Point can provide direct debt financing to local house corporations. Each debt financing opportunity is evaluated on an individual basis with respect to approval, as well as rate pricing.
Below is a basis overview of the real estate loan policies of Fifth Point:
|Borrower:||Must be an incorporated entity in good standing|
|Loan Amount:||Subject to available funds|
|Security:||Mortgage/Deed of Trust (1st or 2nd) or Leasehold Deed of Trust with Guarantee from Lessee|
|Term:||Five (5) years|
|Amortization:||Not to exceed twenty (20) years|
|Loan to Value Ratio (LTV):||Not to exceed eighty percent (80%) of appraised value|
|Debt Coverage Ratio (DCR):||1.25 (Net Operating Income/Annual Debt Service)|
|Payment:||Monthly or Quarterly|
|Commitment Fee:||Greater of $500.00 or 1% of Loan Amount|
|Origination Fee:||Greater of $1,000.00 or 2% of Loan Amount|
|Closing Costs:||Borrower pays all closing costs|
The application process for loans includes the following:
For more information about Fifth Point's loan program and to see how it may benefit your house corporation, please contact us via e-mail or by telephone at 540.463.1869.