551 W Prentice Ave

Case Study: Small Loans

Property Info

Property Type: Small Loans
Date Closed: August 2022
City, State: Littleton, CO
Lender: Freddie Mac
Loan Amount: $1.6 million
Purpose: Refinance
Rate: 2.98%, 5 Years, Interest Only
LTV: 55%

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

Robert Doxsee

Managing Director
425.777.0235
robert.doxsee@berkadia.com

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.

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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.

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