551 W Prentice Ave
Case Study: Small Loans
Property Info
Property Objectives
The borrower contacted Berkadia in early December 2021. With the fixed period ending on his current loan and interest rates on the rise, he was concerned with the financial future of his investment. Further complicating matters, the borrower’s prepay did not end until April 1st, 2022. He was looking for solutions to maintain his steady cashflow.
Berkadia Solution
After weighing all the options, it made the most sense for the borrower to put a new loan in place that locked in his rate now and provide interest only payments. As a Berkadia client, we assisted the borrower in signing a Freddie Mac SBL loan application in early December with a 120 day extended delivery. It protected him from the rising rates. It provided him with 5 years of interest only payment and allowed him to re-lock his rate and not go to a floating rate.
Client Results
The day the borrower signed the application, the 5 year treasury rate was at 1.48%. The day we closed on the refinance the 5 year treasury rate was 2.82%. In using a extended delivery and avoiding any prepayment penalties, Berkadia was able to lock in a rate for the borrower that was 1.34% lower than market value.
The Berkadia Advantage
In today’s volatile market, taking risk off the table is as important as ever. Locking in rates early, preserving cashflow, and working with mortgage bankers that know how to structure loans to fit your needs, is as important as ever. Berkadia is the #1 Freddie Mac Optigo® Lender and #3 Fannie Mae DUS Provider in the country, there is no one better to work with.
Mortgage Banking
Berkadia Small Loans
Berkadia Small Loans offers Fannie Mae Small Loans and Freddie Mac Optigo® Small Balance Loans for multifamily loans up to $7.5 million. Comprised of dedicated management and mortgage banking professionals, the team’s intimate knowledge of Fannie Mae and Freddie Mac loan programs provides a seamless process and customized solutions.
Learn more about Berkadia Small Loans.
Client Stories
Sunburst
Apartments
Berkadia is dedicated to leading the digital transformation of commercial real estate with investments in technology like Esusu, a rent-reporting platform created to build tenants’ credit. Multifamily property owners who implement Esusu can decrease evictions and vacancies and maximize NOI. As partners, Berkadia borrowers may receive closing cost credits and discounted rates.
551 W PRENTICE AVE
As Freddie Mac’s #1 Optigo® Lender and Fannie Mae’s #2 DUS Producer, Berkadia Small Loans is skilled in navigating GSE programs to find the best loan executions for our clients. Though the lending landscape continues to evolve, agency small loan executions remain one of the best options for investors who recognize the value of optionality and take advantage of rate locking.
Credit facility executions allow borrowers to arrange flexible financing terms for a portfolio of properties on a cross-collateralized and cross-defaulted basis, with property addition, property release, property substitution, and borrow-up capabilities for all asset classes. Kairos Investment Management Company and Berkadia secured a $175 million credit facility backed by Fannie Mae.
We recently partnered with Freddie Mac and Spira Equity Partners to help rehabilitate and preserve 392 units of affordable housing for the residents of Brittany Bay Apartments. Brittany Bay has the most units of any community in a High Opportunity Area that Freddie Mac has financed.
The Fairfield Affordable Housing Preservation Fund is focused on acquiring rent and income-regulated affordable housing assets in markets throughout the U.S. The Fund is Fairfield’s first affordable housing-focused investment vehicle open to third party investors and will leverage Fairfield’s 20-year history of investing and managing LIHTC multifamily assets.
A lot with a vacant commercial building that’s fallen into disuse has been transformed into new housing for Los Angeles’ homeless community by development company and Berkadia partner, Aedis Real Estate Group. Berkadia originated $50 million in Freddie Mac’s TEL forward commitments that will finance Hope at Avalon, as well as two sister projects Hope on Broadway and Hope on Hyde Park.
JASA is a longtime Berkadia client and non-profit organization committed to the safety, health, and well-being of seniors. Recently, Berkadia financed $46M+ in loans for two JASA properties under the HUD 223(f) program. In addition to repairs and upgrades, the higher leveraged, low interest rate loans enabled JASA to allocate funds to programs benefiting their residents.
RESEARCH, INSIGHTS AND NEWS
Access the latest market-driven insights, research and news from Berkadia.
Berkadia DC Metro Closes Over $800M in Transaction Volume Year-to-Date
Affordability Status Set to Expire for Hundreds of Thousands of Units, Exacerbating Housing Shortage in the U.S.
Hilary Provinse Named a Power Finance Leader by Commercial Observer
The Gates at Marina, Marina, CA | Financed by Berkadia 2024