Muti-Family Apartment Loans

Eligible Property Types:

Existing Apartments In Good Condition.


Property Age:
Post 1975 construction is preferred, although older properties will be considered.

Loan Limits:
The loan may not exceed 80% of value or the amount that produces a minimum debt service coverage ratio of 1.2.

Occupancy Requirements:
The property must have had at least 85% occupancy for the past 12 months. Unusual tenancies or lease expiration characteristics are considered on a case-by-case basis.

Borrowing Entity:
Generally, a single purpose entity is required.

Loan Term:
5, 7, or 10 years balloons. Amortizations are generally 15-25 years but may be as long as 30 years for newer properties in good condition.

Interest rates are set at a fixed spread over comparable term treasuries and vary as a function of coverage ratios. Both fixed and variable rate programs are available. Please call for current spread requirements. Fees:
The borrower is responsible for all closing costs and required reports (appraisals, engineering and environmental reports, surveys, etc.).

Non-recourse except for normal carve-outs.

Yes, with consent and a 1% assumption fee.

Tax and insurance reserves are required. Also, a replacement reserve account is to be established and funded at a minimum rate (TBD) per unit, per year.

Varies, usually no prepayment for about half of the term, defeasance or yield maintenance thereafter. Open to prepayment without penalty in the final six months.

Not Permitted:
Leasehold properties, co-ops, and condos. Properties with friable asbestos excluded.

We can consider on an exception basis subsidized properties, secondary financing, tenant concentration over 25% for military or single employers, properties with large levels of commercial income or corporate leases, and borrowers with troubled credit history.