Berkadia | Small Loans Brochure

SMALL LOANS MULTIFAMILY

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.

Berkadia is a top multifamily lender because we’re experts in our domain. Whether it’s small loan agency lending, FHA/HUD financing or affordable housing, no one has more knowledge, experience, or ability to execute than we do. It enables us to provide best-in-class financing for clients no matter what they are doing in the multifamily space.”

ROBERT DOXSEE Managing Director, Berkadia

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.

Servicing

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

Investment Sales

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

Technology

Advanced decision-making with actionable insights backed by our powerful data.

HIGHLIGHT TRANSACTIONS

HIGHLIGHT TRANSACTIONS

Beacon Hill Denver, CO

$6,050,000

Glenaire Apartments San Diego, CA $3,480,000

Miami Springs, FL $2,813,000

AGENCY LENDING

Berkadia Rankings

Freddie Mac

#1

Optigo ® Lender

Fannie Mae

#2

DUS Lender in 2022

Fannie Mae Small Loans

Loan Size

$1 million – $6 million

Loan Purpose Acquisition or Refinance Units

5+

Eligible Property Types

Conventional (market-rate) multifamily and some manufactured housing communities

Stabilized multifamily properties ( ≥ 90% occupancy for 90 days; ≥ 90% over T12 if < 10 units)

Benefits of Agency Lending

y Non-recourse debt (with standard carve-outs)

y Up to 80% LTV at a 1.25x minimum DSCR (1.20x in top markets)

y 5 to 30-year loan terms with 30-year amortization and interest-only also available

y Fixed and hybrid fixed-to-floating rate options

y Flexible prepayment options

y Low transaction costs

y Streamlined third-party reports

y Competitive rates

y Acquisition or refinance permitted

y 60 to 75-day closing time frames achievable

y Fixed-rate period from 5 to 30 years

Terms

Prepayment Options

y Up to 30-year amortization

y Maximum 80% LTV

y Minimum 1.25x DSCR

y Partial and full-term interest-only available

Stepdown prepayment penalty is available. Yield maintenance (YM) 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 y Tax and insurance escrows required; may be waived on lower leverage transactions

y 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 million – $7.5 million

Loan Purpose

Acquisition or Refinance Units

5+

Eligible Property Types Conventional (market-rate) multifamily and some affordable housing

Stabilized multifamily properties (ideally ≥ 90% over T3, lower by exception)

Terms

y Fixed-rate period from 5 to 10 years

y Fixed, or hybrid ARM (fixed-to-float, due in 20 years)

y 30-year amortization

y Maximum 80% LTV

y Minimum 1.25x DSCR (1.20x in top markets)

y 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 y Tax and insurance escrows required; may be waived on lower leverage transactions

y 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

SUCCESS IS NOT PURELY MEASURED BY NUMBERS.

But, they help tell our story

$1.4 billion

Since launching Berkadia Small Loans in 2019, we have financed more than $1.4 billion.

#1

Ranked as Freddie Mac’s #1 Optigo® Lender in 2021 and 2022.

600+

Since 2019, Berkadia has closed more than 600 loans with Freddie Mac and Fannie Mae’s small loan programs.

$38 billion

In 2021 and 2022 our combined agency lending production totaled $38 billion.

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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.

BERKADIA SMALL LOANS

Investment Sales (IS) Mortgage Banking (MB) Both IS & MB Small Loans

Adam Dosskey Managing Director 415.521.8297

adam.dosskey@berkadia.com

Matthew Nelson Managing Director 646.432.7442

matthew.nelson@berkadia.com

Robert Doxsee Managing Director 425.777.0235

robert.doxsee@berkadia.com

Ronald Cavalieri Director 617.648.4182

ronald.cavalieri@berkadia.com