MBA Research Update from MBACREF16

Today, at MBA’sCREF16 Convention, the MBA released several reports covering the commercial/multifamily real estate finance markets. The reports are part of MBA’s ongoing research and analysis. Among the findings:

  • 2015 Q4 Commercial/Multifamily Originations Up 19%; Total 2015 Up 24%
  • Volume of Commercial/Multifamily Mortgages Maturing Grows 51%
  • MBA Forecasts 3% Rise in Commercial/Multifamily Mortgage Bankers Originations in 2016; Mortgage Debt Outstanding to Rise to $2.9 trillion
  • MBA Releases 2015 Year-End Commercial/Multifamily Servicer Rankings

Abstracts of and links to the reports can be found below, and more information is also available in MBA’s CREF Database and on
2015 Q4 Commercial/Multifamily Originations Up 19%; Total 2015 Up 24%
There were strong volumes of borrowing and lending for commercial real estate in 2015. In particular, the fourth quarter was the fourth highest for borrowing and lending on record. Banks, life insurance companies, and Fannie Mae and Freddie Mac saw their highest tallied originations volumes. Of the major investor groups, only the CMBS market didn’t break a record for originations. In terms of overall borrowing and lending volumes, 2015 as a whole was likely second only to 2007.
View MBA’s Q4 Commercial/Multifamily Mortgage Bankers Originations Index

Volume of Commercial/Multifamily Mortgages Maturing Grows 51%
Eleven percent or $183.3 billion of $1.7 trillion of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2016, a 51 percent increase from the $121 billion that matured in 2015. Maturities will grow to $208 billion in 2017.
Learn more about MBA’s Year-end 2015 Commercial/Multifamily Loan Maturity Volumes Report

MBA Forecasts 3% Rise in Commercial/Multifamily Mortgage Bankers Originations in 2016; Mortgage Debt Outstanding to Rise to $2.9 trillion
Commercial and multifamily real estate finance markets are expected to remain strong. A growing economy, coupled with only gradual increases in interest rates, will continue to support the commercial property market, but there is a chance that cap rates could increase more rapidly in response to rising interest rates, impacting property sales and mortgage originations.
View MBA’s Fifth Annual Commercial/Multifamily Real Estate Finance Forecast (members only access)

MBA Releases 2015 Year-End Commercial/Multifamily Servicer Rankings
MBA’s Servicer Rankings includes breakouts for primary, master and special servicing. It also ranks firms by their total volumes, as well as their servicing for specific investor groups, including CMBS, life insurance company, Fannie Mae and Freddie Mac, FHA and other groups.
View MBA’s Year-End 2015 Commercial/Multifamily Servicer Rankings

Class A Warehouse Properties Financed for $8,500,000


Michael Kelly and Michael Stordahl of Q10 Realty Mortgage & Investment Company arranged $8.5 million in financing for two Class A warehouse buildings located in Meridian Business Park in Albuquerque, NM. As a correspondent for this Life Insurance Company Investor, we provided a 15-year fixed-rate loan, a 25-year amortization, and flexible prepayment options for the Borrower.

As one of the city’s Class A industrial parks, Meridian offers rigid development standards, set-back requirements, abundant parking and well-planned streets and landscaping.

“The excellent accessibility and planning of the park has attracted numerous tenants and will continue to do so as industrial users of aging space look to relocate to a new facility that offers excellent points of accessibility. The allure and accessibility of the properties were very attractive to our Investor.” – Michael Kelly

$6.5 Million Financed for Bay Terrace Office Building

Bay Terrace II - Cover Photo[4]

Michael Kelly and Michael Stordahl of Q10 Realty Mortgage & Investment Company arranged through coordination with the Houston Q10 Capital Partner, Q10 KDH, $6.5 million in financing for Bay Terrace multi-tenant office building located in Houston, Texas. The financing was provided by a correspondent life insurance company who provided a 15-year fixed-rate loan.

“This loan was a long-term fixed rate with an existing client that holds commercial real estate assets for long term income and value appreciation. The Loan was call protected for the loan term but offered flexible prepayment options to the borrower.” – Michael Kelly


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


  • 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

Q10 Posts a Strong 2nd Quarter


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Q10 continues to see an active market in 2015 with over $1.5 billion originated commercial real estate loans in 2nd quarter 2015. Q10 has over 130 highly experienced finance professionals located in 23 offices throughout the country. Our clients include local, regional and national developers, investors, property owners and REITS.

Our business is built on strong relationships, and we strive to deliver the capital you need for you next loan with a hands-on approach. We would appreciate the opportunity to represent you on your next transaction. Please call to speak with one of our producers at (303) 770-5979 or (505) 830-7664 or email

Clifford Plaza I & II Office Buildings Financed for $7 Million

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Michael Kelly and Michael Stordahl of Q10 Realty Mortgage & Investment Company arranged $7.0 million in new financing for Clifford Plaza I & II office buildings located in Albuquerque, New Mexico.  The three-story buildings are over 100,000 Square Feet and are 90% occupied after a substantial renovation of all common areas and major tenant improvements.

“Clifford Plaza was a Division headquarters for Cardinal Healthcare for many years up until 2013 when the company decided to relocate this division outside of the US. Given the location of the buildings, the layout and flexibility of the floor plates and the quality of the asset, the owners elected to re-tenant the asset into a major multi-tenant office building that is very competitive in the Albuquerque office market.” – Michael Kelly

Happy 4th July from Q10

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Four score and seven years ago our fathers brought forth on this continent a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal.
~ Abraham Lincoln

$3.4 Million Financing for FedEX Ground Facility

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Michael Stordahl, Vice President with Q10 Realty Mortgage & Investment Company arranged $3.4 Million in financing for a FedEx Ground Facility in Dickenson, ND.  The facility contains 21,662 SF of office and warehouse space and is currently 100% occupied by FedEX.  The building was constructed to service the growing demand for shipments in the SW quadrant of North Dakota. Dickinson has become one of the fastest growing cities in the United States with a strong economy and a current unemployment rate that is one of the lowest in the nation at 1.8%.

Michael states, “The key to the success of this financing was the quality and strength of the Borrower and the low loan-to-value and purchase price required by the Borrower.”