For some borrowers, mezzanine financing
has become a great solution to a recurring problem. Mezzanine financing can
provide the additional dollars and higher leverage that today’s borrowers need
to meet their financing goals, and Freddie Mac’s High-Leverage loan product is
uniquely designed to simplify the mezzanine process and reduce its cost by
eliminating the need for a third-party lending source.
Freddie Mac’s High-Leverage loan
product* can be used in conjunction with any of its traditional financing
products to provide up to 85% loan to value (LTV). This product offers a
combined loan amount of $3 to $22.5 million, provides 7 to 10 year terms, and
features 30 year amortization – all without the onerous fees usually associated
with mezz debt.
PNC ARCS is one of America’s leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America’s leading Fannie Mae DUS™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers’ needs.
The company is now the single source
for all real estate financing across the full range of commercial property
types.
Beyond the benefits of any specific
lending product, PNC ARCS’ experience, expertise and unwavering commitment to
extraordinary customer service are what set us apart from the rest. No one
delivers more.
*Available in CA, HI, NJ , NY and
southern CT. Geographic waivers are available on a case-by-case basis. Contact
your loan representative for more information
Product Overview
Eligibility Market
rate garden, mid and high-rise apartments, co-ops and senior housing apartments
Combined Loan Amounts
$3 million minimum. $22.5 million maximum.
Term/Amortization 7
to 10 year term Up to 30 year amortization
Interest Rate
Fixed only. Separate rates on 1st and 2nd mortgage locked simultaneously
Combined DSC Ratio
1.15x%
Loan
to Value 75% maximum (1st) Greater of
10% or $500,000 maximum (2nd) 85% maximum (combined)
Personal Recourse None, except for typical lender "Carve-Outs"
Prepayment Prepayable in full, subject to applicable yield maintenance
Third Party Fees Includes appraisal, environmental, and engineering reports
Minimum Occupancy Requirement
90% for 90
Replacement Reserve Impounds Required. Not less than
$150/unit
Assumability Assumable with lender approval
Supplemental Mortgages
Not allowed while 2nd mortgage is outstanding
Available only in select regions. Contact us to find out if your property qualifies.