CHICAGO, IL– December 17, 2019 – Berkadia announced today the closing of $35.6 million in financing, including an $18.1 million cash out, for a 10-property, 305-unit multifamily portfolio in Los Angles, Northridge and Santa Monica, California. Managing Director Aaron Abelson of Berkadia’s Chicago office secured the financing through the Fannie Mae Multifamily Small Loan program.
The loan portfolio is comprised of 10 individual loans with the following terms: 12-year, fixed rate first mortgages, with an interest rate of 3.82 percent and full-term interest-only payments.
“Berkadia was able to accomplish the borrower’s goal of rate locking at loan application via a Fannie Mae Streamlined Rate Lock. The loans were priced ‘all or nothing’ but not crossed and all of the loans were funded in fewer than 30 days from a signed application,” said Abelson. “In addition, the borrower was able to obtain significant cash out proceeds to return equity to the partners in order to fund anticipated capital projects, as well as deploy capital into future acquisition targets.”
“We’re thrilled to have been able to provide the borrower with an ideal mix of proceeds, rate, term and interest-only available through the Fannie Mae DUS program along with the streamlined underwriting and cost savings advantages of their small loan execution,” said Chris Philipps, Berkadia’s Head of Small Loan Originations.
Berkadia officially launched their small loan product earlier this year, now offering both Fannie Mae Multifamily Small Loan and Freddie Mac OptigoSM Small Balance Loan executions.
“The speed at which we transacted demonstrates the capabilities of the dedicated small loan team we’ve built over this past year, as well as our ability to leverage the expertise and experience of our well-established conventional platform,” commented Philipps. “We’re poised for a strong 2020. With multifamily loan purchase caps and affordable housing targets set for the next four quarters, there is a renewed focus on the agencies’ small loan programs, which generate highly affordable, mission-driven business.”
L.A. Area Multifamly Portfolio Financed with $35.6 Mil in Fannie Mae Money | RENTV