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Cross Collateral Release Price Calculator

Cross collateral adds complexity. This calculator sizes release.

$
%

Release price

$3,450,000

Pro-rata share

$3,000,000

Premium to pro-rata

$450,000

How the math works

Pro-rata = loan × share. Release = pro-rata × multiplier. Premium = release − pro-rata.

$25M portfolio loan, 12% property share, 1.15x multiplier: $3M pro-rata × 1.15 = $3.45M release. $450k premium paid down vs pro-rata. Factor into sale/disposition economics.

How to Use

  1. Enter portfolio loan balance.
  2. Enter property share of collateral %.
  3. Enter release multiplier.
  4. Read release price.

Frequently Asked Questions

Why cross?

Portfolio loan secures multiple properties with single mortgage. Benefits: lower rate (diversification), aggregated coverage tests, operational simplicity. Trade-off: selling any one property requires release from cross-collateral; complex process.

Release multiplier?

Typical 1.10-1.25x pro-rata share of loan. E.g., property = 10% of portfolio collateral, owes $1M of $10M loan. Release: $1.1-1.25M (110-125% of pro-rata). Extra premium reduces remaining portfolio leverage — lender protection.

Negotiation?

Lower multiplier for strong sponsors (1.10). Higher for stressed borrowers (1.25-1.30). Bulk sale: negotiate pool release terms. Partial prepay: separate protocols. Specific release terms in original loan docs.

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