Document ID: chunk:federal_register_of_legislation:F2024L01074:body:0:p59
Version: federal_register_of_legislation:F2024L01074
Segment Type: other
Provision Reference: 
Character Range: 175551–183017

There may be a dispute with the party providing the permanent financing.
Asset characteristics
Location                                                        The property is located in a highly desirable location that is convenient to services that tenants desire.                                                                                                                                                                                          The property is located in a desirable location that is convenient to services that tenants desire.                                                                                                                                                                                                          The property location lacks a competitive advantage.                                                                                                                                                                                                                                                     The property's location, configuration, design and maintenance have contributed to the property's difficulties.
Design and condition                                            The property is favoured due to its design, configuration and maintenance and is highly competitive with new properties.                                                                                                                                                                            The property is appropriate in terms of its design, configuration and maintenance. The property's design and capabilities are competitive with new properties.                                                                                                                                               The property is adequate in terms of its configuration, design and maintenance.                                                                                                                                                                                                                          Weaknesses exist in the property's configuration, design or maintenance.
Property is under construction                                  The construction budget is conservative and technical hazards are limited. Contractors are highly qualified.                                                                                                                                                                                        The construction budget is conservative and technical hazards are limited. Contractors are highly qualified.                                                                                                                                                                                                 The construction budget is adequate and contractors are ordinarily qualified.                                                                                                                                                                                                                            The project is over budget or unrealistic given its technical hazards. Contractors may be under qualified.
Strength of sponsor/developer
Financial capacity and willingness to support the property      The sponsor/developer made a substantial cash contribution to the construction or purchase of the property. The sponsor/developer has substantial resources and limited direct and contingent liabilities. The sponsor/developer's properties are diversified geographically and by property type.  The sponsor/developer made a material cash contribution to the construction or purchase of the property. The sponsor/developer's financial condition allows it to support the property in the event of a cash flow shortfall. The sponsor/developer's properties are located in several geographic regions.  The sponsor/developer's contribution may be immaterial or non-cash. The sponsor/developer is average to below average in financial resources.                                                                                                                                                            The sponsor/developer lacks capacity or willingness to support the property.
Reputation and track record with similar properties             Management are experienced and the sponsor's quality is high. Strong reputation, lengthy and successful record with similar properties.                                                                                                                                                             Appropriate management and sponsor's quality. The sponsor or management has a successful record with similar properties.                                                                                                                                                                                     Moderate management and sponsor's quality. The management or sponsor track record does not raise serious concerns.                                                                                                                                                                                       Ineffective management and sub-standard sponsor's quality. The management and sponsor difficulties have contributed to difficulties in managing properties in the past.
Relationships with relevant real estate agents                  Strong relationships with leading agents such as leasing agents.                                                                                                                                                                                                                                    Proven relationships with leading agents such as leasing agents.                                                                                                                                                                                                                                             Adequate relationships with leasing agents and other parties providing important real estate services.                                                                                                                                                                                                   Poor relationships with leasing agents and/or other parties providing important real estate services.
Security package
Nature of lien                                                  Perfected first lien.                                                                                                                                                                                                                                                                               Perfected first lien.                                                                                                                                                                                                                                                                                        Perfected first lien.                                                                                                                                                                                                                                                                                    Ability