Welcome to the EN Capital newsletter where we promote different capital sources such as private lenders, family offices and equity funds in addition to general capital markets news. We’re also promoting the new alternative investment conference series called Uncorrelated, EN Capital is a partner in certain Uncorrelated events.

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Agency Alternative Apartment Financing

A multi-billion per year lender that has been in the residential construction financing space has launched a new debt product focused on providing an agency alternative for multifamily properties. This group is backed by a major private equity fund so they have very deep lending capacity.

What’s Agency-Alt? Loans that are just enough outside of Fannie/Freddie requirements to not be approved. Examples:

• Higher Leverage Bridge Loan Takeouts

• Deals in Non-Top Markets where More Leverage is Needed

• Any one of a hundred reasons that Agencies would not be a good fit: Recent stabilization, student concentration, under 90% occupancy, punitive insurance requirements, 100%+ LTC, to name just a few

This lender is a Faster, Easier answer to Agencies. They provide:

• Higher Leverage – Typically 5-20% more proceeds than Banks/Agencies because they underwrite to a 1.25x DCR on the Interest-Only debt service, on a T-Now approach to income

• Faster Closings – They average 32 days from LOI to close

• Make-Sense Underwriting – Whether it’s a 90%+ LTC refi at 3 months, some student concentration, or under 90% occupancy... There are a hundred reasons for Banks/Agencies to pass on a solid deal. That’s where they shine.

• Low Documentation – Even though their loans are recourse, they do not collect tax returns, or run a global cash flow analysis.

Lending Criteria:

• Loan Amounts: $1 - $10M

• 5 - 100 Unit Properties

• 5 / 7 / 10 Year Terms

• 1.25 DSCR I/O

• Max LTV: 75%

• Low Cost Execution: $10K - $15K Combined Good Faith Deposit + Legal

• Recourse Required but NO Tax Returns or Global Underwriting

• Interest Rate: 5yr T + (250 - 350bps)

• Lender Fee: 1.5pts

• Nationwide

• Min Occupancy: 80%

If you have a deal that needs financing click the button:

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• EN Capital is capital advisory firm / intermediary and NOT a direct capital source. Seriously, every time we sent out an email someone replies and gets pissy when they realize we’re intermediaries and not direct lenders. It’s clear on our website, LinkedIn and emails. We don’t know how to make it more obvious. Don’t be that guy.

Be sure to connect with EN Capital on Linkedin. and visit our website here.

Nathan Whigham
President
CA DRE Broker License: 01793655

EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-9253