News

SMALL BALANCE APARTMENT LOAN PROGRAM

Q10 Realty Mortgage & Investment Company is pleased to announce it is providing loans for apartment projects between $1.0 and $5.0 million

View Pricing

Target Loan Size: $1.0 and $5.0 million – Larger amounts on a portfolio of individual loans of up to no more than $5.0 million each

Maximum Leverage: 75% for Refinance – 80% for Acquisition

Term: 5, 7, 10 and 15 Year fixed rates

Amortization:  Up to 30 Years

Interest Rates: Various Interest rate options are available, including 5, 7, 10 and 15 year fixed or floating rates.

Fees: 1% Origination Fee

Third Party Reports: Appraisal, Property Condition Report, Phase I, Mortgagee Title Insurance and Survey

Target Investments: Conventional apartments with 20 Units or more including apartments with affordable components such as tax abatements and Section 8 Vouchers, etc.

Call Protection: Early prepayment allowed with structured stepdown prepayment or Yield Maintenance

Recourse: Non-Recourse except for Standard Carve-Outs

NOTES:

  • Loan Size $1-$5 mm
  • Number of months open for prepayment without penalty at the end: 3
  • For Hybrid ARMs:
    • Floating rate coupon is based on six-month LIBOR +275 margin
    • During the floating rate period, the rate is reset every six months and amortization is recalculated.
    • Floor rate is equal to the initial fixed rate.
    • Cap Structure: 1-1-5 (Max 1% change in initial reset, max 1% change at each reset, and lifetime cap is 5% over the initial fixed rate.
  • Following the closing, the receipt of all final documentation from Borrower, and the purchase of the Loan, the Good Faith Deposit shall be refunded to the borrower
  • Stepdown Prepay Description: Refers to % of UPB, with years in parenthesis if > 1 year – e.g. 3(2), 2(2), 1(3) is two years at 3%, two years at corresponding pricing changes.
  • For to Markets – 80%/1.2x; For Small Markets – 75%/1.30x; For Very Small Markets – 75%/1.40x
  • Pricing will vary based on many factors, including low LTV and high DSCR. Above rate is only an estimate.  Top Market pricing will be approximately 30-60 bps below Indicative Rate listed.
  • Top Markets: New York – Newark – Jersey City/Boston-Cambridge-Newton/Philadelphia-Camden-Wilmington/Washington, DC-Arlington-Alexandria/Chicago-Naperville-Elgin/LosAngeles-Long Beach-Anaheim/San Fransico-Oakland-Hayward-San Jose-Sunnyvale-Santa Clara/San Diego-Carlsbad/Denver-Aurora-Lakewood/Minneapolis-St. Paul-Bloomington/Portland-Vancouver-Hillsboro/Seattle-Tacoma-Bellvue