Multi-Family Preferred Equity,Mezzanine & Bl-Sheet

We have a fund we are working with that is targeting multi-family deals in United States only and they offer both debt, preferred equity and Mezzanine fund.

1)Multi-Family Balance Sheet Financing:

multi-family financing opportunities for a balance sheet nationwide (USA) credit union. Loan terms.

Acquisition, Value - Add & Bridge
Loan size - $8-$100 million
LTV/LTC - Up to 80% of total project costs/Up to 75% of stabilized value
Debt Yield - None required going in, projected stabilized NOI at 9%.
Term - 5 years, no lock out, no pre-payment penalty.
Pay Rate - 6.25-6.75%, fixed
Amortization - Interest only for up to 2 years, then 25-30 years.
Recourse - Non-recourse when NOI reaches 1.25% DSCR, full/partial recourse initially.
Fees - 1.5%
Markets - Primary, secondary, tertiary, nationwide.
Property - Class A, B & C

Construction

Loan size - $10-$100 million
LTV/LTC - Up to 80% of total project costs and 75% of stabilized value
Cap Rate - Projected build to cap rate not less than 7%
Term - 5 years
Rate - 6.75%, fixed
Amortization - Interest only, payable from capitalized reserve.
Recourse - Full
Fees - 2%

2) Multi-Family Structured Financing
Mezzanine & Preferred Equity - correspondent, originates multi-family financing opportunities for a balance sheet debt fund.

Loan Terms:

i) Mezzanine
Loan size - $4-$50 million
LTV/LTC - Up to 80% of total project cost/ up to 75% on projected stabilized value.
Lien Position - inter-creditor/recognition agreement.
Term - up to 3 years, with extension options up to 5 years.
Rate - 11.5-14.5%, pay rate in the 5-9% range, balance paid at exit.
Amortization - Interest only, payable from capitalized reserve if needed.
Recourse - Non-recourse except bad acts carve-outs and completion guarantee where applicable.
Fees - Market competitive based on timing to close, size and risk, generally 1-2%
Markets - Nationwide (USA)

ii)Preferred Equity

Size - $4-$50 million
LTV/LTC - Up to 85% LTC and 75% of projected stabilized value.
Security - Can be subordinate to Fannie and Freddie.
Term - up to 3 years with extension options to 5 years
Rate - 12-14.5%, pay rate at 5-9%.
Amortization - Interest only, payable from capitalized reserve if needed.
Recourse - Non-recourse except “bad-boy” carve-outs and completion guarantee where applicable.
Fees -Market competitive based on timing to close, size and risk, generally 2-3%
Markets - Nationwide (USA)