Berkadia | Small Loans Brochure

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SMALL LOANS Multifamily


Our passion working with small loans goes beyond the numbers. Seeing our clients succeed and gain confidence as they embark on their investment journey and grow their portfolios with solutions that give them the confidence and security... that is what brings our team the real rewards." C H R I S T I N E P R AT T Head of Small Loan Originations Berkadia


WHERE VISION INTERSECTS WITH OPPORTUNITY Our expertise and dedication show in all we do to help clients reach their growth potential and realize their vision. Berkadia Small Loans is made up of mortgage bankers and analysts who know the ins and outs of small loans and can bring you solutions that align with your needs. With the support of a network with a presence in every major market nationwide, unparalleled access to data, and the skills and resources to serve the lifecycle of your investment, our advisors are prepared to effortlessly navigate you through the agency lending process.

Small Loans

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IT’S IN OUR DNA. Our mission is inspired by our two shareholders who created Berkadia— Berkshire Hathaway and Jefferies Financial Group. Both firms are renowned for their capital strength, sophisticated investment strategies and exacting attention to their clients’ diverse needs. We’re honored to continue the Berkadia legacy in everything we do. When you work with us, you’re more than a client, and more than a partner. You’re a member of our family.


Mortgage Banking Your projects, of any size and location, benefit from best‑in‑class financing partners and unparalleled access to capital.

Investment Sales When you equip the right professionals with industry-leading insights and tools, the result is better investment outcomes.

Servicing Get customized solutions and seamless service with our established resources and proven expertise.

Technology Charge your decision‑making with actionable insights backed by our powerful data.

Small Loans

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AGENCY LENDING

Berkadia Rankings Freddie Mac

Fannie Mae

Optigo Lender

DUS Producer for Small Loans

#1

#3

Benefits of Agency Lending Non-recourse debt (with standard carve-outs) Up to 80% LTV at a 1.25x minimum DSCR (1.20x in top markets) 5 to 30-year loan terms with 30-year amortization and interest-only also available Fixed and hybrid fixed-to-floating rate options Flexible prepay options Low transaction costs Streamlined third party reports Competitive rates Aquisition or refinance permitted 60 to 75-day closing timeframes achievable

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BERKADIA Small Loans


Fannie Mae Small Loans Loan Size: $1.5 million $6 million Loan Purpose: Acquisition or Refinance Units: 5+ Eligible Property Types: Conventional (marketrate) multifamily and some manufactured housing communities Stabilized multifamily properties (≥90% occupancy for 90 days; ≥90% over T12 if <10 units)

Terms:

• Fixed rate period from 5 to 30 years • Up to 30-year amortization

• Maximum 80% LTV • Minimum 1.25x DSCR • Partial and full term interest-only available

Prepayment Options:

Stepdown prepayment penalty is available. Yield Maintenance is standard. Length of YM is customizable.

Rate Lock:

Rate floats until final commitment prior to close; an elective rate lock is available for a fee

Recourse:

Non-recourse with standard carve-outs

Supplemental Financing:

Available

Subordinate Debt:

Not permitted

Net Worth and Liquidity:

Net worth ≥ loan amount and liquidity ≥9 months principal and interest

Escrows:

• Tax and insurance escrows required; may be waived on lower leverage transactions • Replacement reserves required; may be waived in eligible markets or on lower leverage transactions

Third-Party Reports:

Appraisal, streamlined Property Condition Assessment report, and seismic (if needed)

Assumption:

Typically assumable for 1% assumption fee, paid by new borrower, subject to review and approval of the new borrower's financial capacity and experience

Freddie Mac Optigo® Small Balance Loans Loan Size: $1.5 million $7.5 million Loan Purpose: Acquisition or Refinance Units: 5+ Eligible Property Types: Conventional (marketrate) multifamily and some affordable housing Stabilized multifamily properties (Ideally ≥90% over T3, lower by exception)

Terms:

• Fixed rate period from 5 to 10 years • Fixed, or hybrid ARM (fixed-to-float, due in 20 years)

• 30-year amortization

• Maximum 80% LTV • Minimum 1.25x DSCR (1.20x in top markets) • Partial and full term interest-only available

Prepayment Options:

Various declining schedules and yield maintenance options available

Rate Lock

• Rate held at application

Recourse:

Non-recourse with standard carve-outs

Supplemental Financing:

Not available

Subordinate Debt:

Not permitted

Net Worth and Liquidity:

Net worth ≥ loan amount and liquidity ≥9 months principal and interest

Escrows:

• Tax and insurance escrows required; may be waived on lower leverage transactions • Replacement reserves required for properties with ≥ 50 units

Third-Party Reports:

Appraisal, streamlined Property Condition Assessment report, and seismic (if needed)

Assumption:

Typically assumable for 1% assumption fee, paid by new borrower, subject to review and approval of the new borrower’s financial capacity and experience

Small Loans

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SUCCESS IS NOT PURELY MEASURED BY NUMBERS But they help tell our story:

$1.1 billion

500+

Since launching Berkadia

Since 2019, Berkadia has closed more

Small Loans in 2019, we have

than 500 loans with Freddie Mac and

financed more than $1.1 billion.

Fannie Mae’s small loan programs.

150%

$21 billion

Berkadia Small Loans grew 150%

In 2021, our combined agency

as we developed innovative tools

lending production totaled $21

and processes for small loans.

billion.


HIGHLIGHT TRANSACTIONS

Red Run MHC

Beacon Hill

Madison Heights, MI

Denver, CO

$3,724,000

$6,050,000

REFIN A NCE

LENDER

ACQUI S ITION

LENDER

MHC

Fannie Mae

Multifamily

Freddie Mac

Llandover Flats

Glenaire Apartments

Seattle, WA

San Diego, CA

$1,800,000

$3,480,000

ACQUI S ITION

LENDER

REFIN A NCE

LENDER

Multifamily

Freddie Mac

Age-Restricted

Freddie Mac

Des Plaines Apartments Des Plaines, IL

Devonshire House Apartments Miami Springs, FL

$2,667,000

$2,813,000

REFIN A NCE

LENDER

ACQUI S ITION

LENDER

Multifamily

Freddie Mac

Multifamily

Freddie Mac

Summerstone Apartment Homes

Goshen Country Club Augusta, GA

El Paso, TX

$4,704,000

$5,311,000

REFIN A NCE

LENDER

ACQUI S ITION

LENDER

Multifamily

Freddie Mac

MHC

Freddie Mac

Small Loans

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CLOSING IS JUST THE END OF THE BEGINNING We’re in this for the long haul. To us, every deal is the start of a new relationship or the continuation of one built on performance and trust. Our clients are family, and we’re relentlessly focused on your long-term success.


SMALL LOANS

Christine Pratt

Ronald Cavalieri

Head of Small Loan Originations

VP, Small Loan Originations

301.209.3205

508.951.7191

christine.pratt@berkadia.com

ronald.cavalieri@berkadia.com

Berkadia Office

Small Loans

BERKADIA

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BERKADIA .COM / 800.446 . 2226 a Berkshire Hathaway and Jefferies Financial Group company © 2022 Berkadia Proprietary Holding LLC. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. #01931050. For state licensing details for the above entities, visit www.berkadia.com/legal/licensing / 0622.