A DUS Lender Affiliate (“DLA”) Mezzanine Loan is a subordinate loan funded simultaneously with a newly originated Greystone Fannie Mae DUS loan (“Senior Mortgage”). The loan is secured by a 100% pledge of the equity interests in the Borrower. Non-recourse, subordinate financing of multifamily properties.
$1,000,000 minimum. Senior Mortgage minimum of $10,000,000.
Up to 10-year terms available. Coterminous with the Senior Mortgage
Combined Loan to Value Maximum
85% of appraised value
Combined Coverage Minimum
Newly formed SPE, bankruptcy remote Delaware Single-member LLC, owned and controlled by the Sponsor
Pledge of the equity of the Senior Mortgage borrower, secured by UCC filing. Eagle 9 title policy is required
11-13% fixed rate coupon varying with LTV, DSCR, market and sponsor. Senior Mortgage must have a fixed interest rate.
Lockout period of 12 months. Can be prepaid before A Note.
Allowed on the Senior Mortgage; proceeds shall be utilized to pay off the Mezzanine Loan.
Third Party Reports
Mezzanine loan will rely on Senior Mortgage Loan third-party reports. As-Stabilized Appraisal Value required.
Generally limited to reserves stated in the Senior Mortgage Loan Agreement, unless specifically stated otherwise
1%-2%, waived upon Greystone refinance.
Mezzanine closing simultaneous with Senior Mortgage.
Loan is assumable, subject to lender(s) approval of proposed replacement borrower.