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Agenda Packet 9-11-19 Work Session
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Agenda Packet 9-11-19 Work Session
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Work Session
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9/9/2019
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9/9/2019
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PAGE | 2 <br />Loan Product Rate Amortization <br />5 Year Fixed 4.00%-4.59% Up to 30 years <br />7 Year Fixed 3.93%-4.50% Up to 30 years <br />10 Year Fixed 4.09%-4.63% Up to 30 years <br />15 Year Fixed 4.15%-4.68% 30 years <br />30 Year Fixed 4.65%-5.18% 30 years <br />55-80% LTV <br />Loan amounts from $3 million and up <br />Loans available for apartment buildings, cooperatives, affordable housing, student housing, senior housing, and manufactured <br />home communities <br /> Loan to value ratios up to 80% on purchases and 75% on refinances <br /> Cash out refinances are acceptable <br /> Pricing based on loan-to-value and debt service coverage ratio: <br />•Tier 2 - 75-80%/1.25x <br />•Tier 3 - 65%/1.35x <br />•Tier 4 – 55%/1.55x <br /> Interest only loans are available <br /> Step down and yield maintenance prepayment penalties <br /> Nonrecourse loans are available <br /> Principal borrower must meet credit, net worth, liquidity and experience requirements <br />Freddie Mac Small Balance Apartment Loan - Rates Updated 06-04-2019 <br />Loan Product Rates (start as low as) Amortization <br />5 Year Fixed 4.11% Up to 30 years <br />7 Year Fixed 4.16% Up to 30 years <br />10 Year Fixed 4.26% Up to 30 years <br />Bank Apartment Mortgage Loan - Rates Updated 06-04-2019 <br />Loan Product Rate Amortization <br />5 Year Fixed 4.25%-4.75% Up to 30 years <br />7 Year Fixed 4.30%-4.80% Up to 30 years <br />10 Year Fixed 4.50%-5.00% Up to 30 years <br />Commercial Mortgage Backed Securities Loan - Rates Updated 06-04-2019 <br />Loan Product Rate Amortization <br />10 Year Fixed 4.33%-5.13% Up to 30 years <br />3.Are current interest rates trending down? <br />The answer to this question varies by the day but index rates such as treasuries, prime, and LIBOR have been <br />trending downward in 2019. With economic weakness expected in the next few years, rates will likely not face <br />much upward pressure. They are close to historic lows though, and there isn’t much room to drop either. <br />4.Are cap rates in the Eugene area for apartment/multifamily properties currently about 4.6 for Luxury Metro, 4.87 <br />for Class A, 5.24 for Class B and 6.02 for Class C? <br />I am not that familiar with the Eugene market, but those cap rates are generally consistent with what we have <br />been seeing in Portland. <br />5.Have you, your firm or your prior firms worked on any projects involving Robert Bennett, Bennett Management <br />Company, or RNS Management? <br />No, as far as I know we haven’t worked for either Mr. Bennett or RNS Management. <br />September 11, 2019, Work Session – Item 1
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