A permanent take-out commitment is:
A)A way to increase NOI for projects with large debt service obligations
B)An agreement by a lender to provide permanent financing for a property once construction is complete,provided all of the contingencies have been met.
C)Another term for a construction loan
D)The same thing as an acquisition and development loan

Question

Quizplus · Accepted Answer

A permanent take-out commitment is an agreement by a lender to provide permanent financing for a property once construction is complete, provided all of the contingencies have been met. This allows for a smooth transition from a construction loan to a long-term financing solution, which can help increase NOI for projects with large debt service obligations.

A Permanent Take-Out Commitment Is