Multifamily - Single Family Rental - Bridge Loans

The following loan program descriptions and details applies to ALL POTENTIAL BORROWERS-INVESTORS-CLIENTS based in the United States.

Fannie/Freddie/HUD Perm - $1MM Minimum - Value Add Bridge (Multi-Family) - ~$10MM
Value Add Bridge (SFR) - $5MM - Construction (Multi-Family) - $25MM
Construction (SFR/BTR) - $20MM - SFR Perm - $1.5MM
SFR LOC - $10MM - Private Investment (Perm)- $10MM

· Perm loans (Fannie/Freddie) ($1MM Minimum)
o 5-30yr fixed rate deals
o 165-280 spreads over the treasury
o Up to 80% LTV (better pricing for lower leverage)
o 30yr AMT (partial and full term IO periods are available)
o Yield maintenance or stepdown prepay options
o Generally no cash fees
o ~45 day process

· Perm loans (HUD)
o 35yr fixed rate deals
o 5.60%-6.20%
o Up to 85% LTV
o 35yr AMT
o Stepdown prepay options
o Generally no cash fees
o Can take 6-12 months to close a HUD loan

· Value add bridge (~$10MM minimum)
o Up to 80% LTC
· Subject to 70% LTV, 1.25x DSCR, 8% DY as stabilized
o 3yr loan term with extension options
o 375-500 spread over 30 day SOFR (pricing depends on leverage, market, metrics, etc)
o Non-recourse with standard carveouts

· Ground up construction BTR (SFR community) (~$20MM Minimum)
o Up to 80% LTC
· Subject to 75% LTV, 1.25x DSCR, 8% DY as stabilized
o 3yr loan term with extension options
o 425-600 spread over 30 day SOFR (pricing depends on leverage, market, metrics, etc)
o Non-recourse with standard carveouts

· Single Family Rental (SFR) Line of Credit
o Up to 80% LTC
· Subject to 75% LTV, 1.25x DSCR, 8% DY as stabilized
o Term generally 1-3 years with extensions
o 350-475 spread over 30 day SOFR
o 3mo interest reserve
o Non-recourse

· Private Construction Loans:
o $10-50mm (exceptions up to $100mm case by case)
o 5-7yr loan term
o 30yr AMT
o Up to 70% LTV (with 2-3yrs IO); Up to 60% LTV (full term IO)
o 1.20x dscr
o Current spreads about 225 on the 5yr; 235 on the 7yr
o 54321 prepay
o Ability to close deals in lease up
· Must be 60% occupied and 80-90% leased at closing
· If not at 1.20x at closing (resi + commercial vacancy), the difference is held in escrow and earned out after closing once property achieves 1.20x
· Ability to structure for pending tax abatements.
o Potential to add lender's pref piece behind senior loan; sized to combined 1.0 dscr
o Commercial income should be <20% of EGI
o Newly constructed (2010-present) or originally constructed (after 1990) with a subsequent extensive rehabilitation.

Private Construction Loans range from $25 million to $100 million (US ONLY)
Up to 75% Loan-to-Cost, subject to minimum underwritten exit debt yield & DSCR Underwritten to an Agency-qualifying loan exit

Eligible Transaction Criteria:
Vertical/Garden-Style ground-up multifamily projects with Agency-qualifying characteristics
Located in primary markets and strong secondary markets with positive demographic, population and employment trends.
Debt buy-backs with fresh equity
Properties in lease-up
Projected completion within 36 months
Sponsorship with an established track record of constructing, owning and managing multifamily assets with appropriate net worth and liquidity commensurate with the Loan’s credit profile.
Mixed-Use allowance for a portion of pro forma EGI to be generated from non-residential revenue
A complete, cost-engineered construction budget with qualified and experienced general contractors.