Lending Solutions
Customized debt and structured equity for multifamily investors nationwide.
OUR SERVICES
D2’s Multifamily Bridge Program targets assets nationwide with full discretionary balance sheet capability. D2’s leadership has a demonstrated track record of providing certainty of execution across all geographies and varying economic environments.
Loan sizes
$15 million to $75 million and above
Loan Purpose
Acquisition, recapitalization and refinance with the ability to accommodate a wide range of business plans, including light value add, new construction lease-up and timing needs.
Eligible PropErty Types
Conventional, non-LIHTC affordable, student and age-restricted multifamily properties in addition to 3- to 5-star MHCs.
Eligible Markets
Primary, secondary and strong tertiary markets nationwide.
Selective in markets with high exposure to any one specific industry.
Loan Term
Typically structured as a 2- to 3-year initial term with extension options up to a maximum loan term of 5-years.
Interest Rate
Interest only 30-day Term SOFR plus a fixed spread commensurate with risk.
Loan Fees
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Origination fee required.
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Extension fees typically required depending on term and business plan.
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Exit fees required on a case-by-case basis.
Loan Constraints
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LTC ratios up to 80% on new acquisitions, including any budgeted amounts allocated towards capital improvements.
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As-Is LTV ratios up to 80%.
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Stabilized LTV ratios up to 75%.
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Stabilized DY target between 7.5% and 8.0% with a minimum of 7.0%.
Recourse Requirements
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Non-recourse subject to customary carve-outs for bad-boy acts,
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Completion and other structured guarantees may be required depending on each transaction’s unique business plan.
Prepayment
Flexible based upon business plan.
Escrows
Tax, insurance and replacement reserve escrows required.
Additional reserves may be required as determined by D2.Subordinate Debt
Preferred equity allowed subject to D2’s review and approval.
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D2’s Preferred Equity Program targets assets nationwide with full discretionary balance sheet capability. D2’s leadership has a demonstrated track record of providing certainty of execution across all geographies and varying economic environments.
Loan sizes
$3 million and above
Loan Purpose
Acquisition, recapitalization and refinance with the ability to accommodate a wide range of business plans, including light value add, new construction lease-up and timing needs.
Eligible Property Types
Conventional and age-restricted multifamily properties in addition to 3- to 5-star MHCs.
Eligible Markets
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Primary, secondary and strong tertiary markets nationwide
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Selective in markets with high exposure to any one specific industry
Term
Generally, less than 5-years and usually co-terminus with the maturity date of the first mortgage loan.
Pay Type
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Combination of Hard and Soft pay Agency-compliant structures
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Upfront reserves may be required to cover hard pay portion
Origination Fee
Target of 1.0%
Sizing Constraints
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LTV and LTC ratios up to 90%
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Stabilized DY target between 6.5% and 7.0%
Recourse Requirements
Non-recourse subject to customary carve-outs for bad-boy acts.
Prepayment
Flexible subject to minimum equity multiple.
Rights and Remedies
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Primarily a Forced Marketing and Sale of the asset
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May also consider:
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Change of Control
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Change of Property Manager
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