Refinance with Life Insurance Companies - Negotiation & Terms

[Kim Hopkins]

Hello!

We are looking to refinance two of our industrial buildings and we are considering using a broker who works with life insurance companies. The terms are very good - 15 year fixed (almost unheard of for these types of buildings), 25 year am, low rates. 

We've always worked directly with the bank of choice. We've never used a broker. And we've never gone through insurance. I have some questions for those who have experience: 

1. The prepayment penalty is significant. I'm fine with this since we intend to keep both properties for the long term. Is there any major downside to being "locked in" for 15 years that I might not be seeing? 
2. The fees are slightly lower if we cross collateralize - i.e. use one loan for both properties. The two properties are in different states. But still, I don't really see a downside to this either. It would be harder to sell one of the properties, but it's already a big penalty regardless. 
3. Additionally, if we fund both properties with one loan, it's NON-RECOURSE, vs. if we use two separate loans it's 50% recourse. Non-recourse seems pretty great. But again, I'm not planning on going under water - so is it really that much of an advantage worth the messiness or combining both properties into one loan? 
4. Lastly and MOST IMPORTANT: what do people typically negotiate on these with regards to the fees and terms? The fees are SIGNIFICANT - 1% from the broker and .5% from the insurance co. Plus they are requiring Phase I, ALTA, Seismic, and Appraisal. What can be worked on here?
5. Any other "standard terms' you like to edit when you do a loan with an insurance co. and / or broker?

Thank you much in advance!
Kim