Acquisition and Refinancing of Multifamily Properties
3 W. Main St, Suite 103
Irvington, NY 10533
ELIGIBLE PROPERTIES
Market-rate, affordable, and subsidized multifamily housing that are at least three years old and have physical occupancy of at least 85% eligible. Multifamily for seniors may qualify.
INTEREST RATE
Fixed-rate – determined by market conditions
BORROWER
For-profit or not-for-profit single asset entity
PERSONAL LIABILITY
Non-recourse subject to standard carve-outs
MAXIMUM LOAN
| PROPERTY TYPE | MAX LOAN TO VALUE | MIN. DEBT SERVICE |
|---|---|---|
| Subsidized¹ | 90% | 1.11x |
| Affordable² | 87% | 1.15x |
| Market-Rate | 85% | 1.18x |
1 At least 90% of units are supported by a project-based rental assistance contract
2 Regulatory agreement that at least meets the minimum Low-Income Housing Tax Credit restrictions of 40% of units at 60% AMI or 20% of units at 50% AMI in effect for at least 15 years
TERM AND AMORTIZATION
Maximum of 35 years, but no less than 10 years, and is fully amortizing
COMMERCIAL SPACE
Limited to 25% of net rental area and 20% of effective gross income
PREPAYMENT AND ASSUMPTION
Flexible – best execution typically has a combination of lockout and prepayment penalty for 10 years, and is fully assumable subject to HUD approval
REPLACEMENT RESERVES
Minimum of $250 per unit per year or as determined by a Project Capital Needs Assessment (PCNA); initial deposit, if warranted, will be required at closing
MORTGAGE INSURANCE PREMIUM
.25% to 1.00% due at closing and .25% to .60% annually thereafter
HUD APPLICATION FEE
.30% of requested loan amount
HUD INSPECTION FEE
Dependent on repairs/improvements cost; minimum of $1,500
THIRD-PARTY REPORTS
Appraisal, Phase I and PCNA are required; market study may be required
TIMELINE
Deal dependent; typically four to five months after submission of firm application
Let's Get Your Transaction Started
Contact info
844.X-Caliber
(212.220.7040)
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