key fnfg pitch book - commercial multifamily

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Better Together

KeyBank Team & Strategy

Introduction

KeyBank Real Estate Capital is a leading real estate credit provider with a long history of serving real estate companies. KeyBank’s full suite of products and vast capital markets experience allows for a comprehensive financing solution tailored to fit the client’s short term and long term needs. KeyBank provides the following:

Aggressive and flexible underwriting with a focused team execution

Full complement of short and long term financing options, including:

Fannie Mae DUS

Freddie Mac Program Plus

CMBS

Life Company Financing

FHA

Capital markets capabilities to provide solutions across the capital stack

Mezzanine Financing

Preferred equity

Private and public equity placement

Ability to use the broad capabilities of our balance sheet as leverage to promote our mortgage platform and generate superior returns from each client relationship

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Better TogetherNational Real Estate Presence

KeyBank Real Estate Capital has offices in 23 cities throughout the country

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Boston

Washington, D.C.

Atlanta

ChicagoCleveland

Dallas

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Phoenix

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Salt Lake City

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Indianapolis

Ann Arbor

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Tampa

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HEADQUARTERS

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Seattle

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«Portland

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Columbus

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Syracuse

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Overland Park

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Bellevue

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Albany

Philadelphia««

Irvine

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Pittsburgh

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RochesterBuffalo

New Haven

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Better TogetherDebt Capital Markets Capabilities

Full-service mortgage banking platform with direct access to Life Company Financing, Pension Fund Accounts, Bank Financing, CMBS, Debt Funds, Mortgage REITs, Fannie Mae, Freddie Mac and FHA.

KBREC’s dedicated origination team provides access to the debt capital markets exclusively for targeted KeyBank clients.

KBREC can utilize its balance sheet to provide creative solutions differentiating it from any other mortgage banking platform.

Ability to access capital from $3,000,000 mortgages to over $150,000,000 transactions evidencing KeyBank’s focus on serving the client’s needs.

KBREC maintains the 2nd largest servicing portfolio in the industry, servicing over $185 billion in total loans.

KeyBank Real Estate Capital (KBREC) Product Suite Third Party

PlacementLife Companies, Pension Fund

Accounts, Bank Financing, and Debt

Funds

Structured Finance

CTL Financing, Mezzanine Financing & Equity Placement

FHA / HUD

Federal Housing Administration

Freddie Mac(“FHLMC”)

Federal Home Loan Mortgage Corporation

Fannie Mae(“FNMA”)

Federal National Mortgage Association

CMBS

Commercial Mortgage Backed Securities

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Better TogetherAccess to Debt and Equity Products

Third Party Mortgage Brokerage

CMBS Balance Sheet CTL Fannie Mae Freddie Mac FHA

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Better TogetherCMBS – Fixed Rate Conduit Program

Loan Size: $2.0 million to $75 million

Property Types: Office, Retail, Industrial, Multifamily, Self-Storage, Manufactured Housing, Hospitality

Locations: Nationwide

Borrower:<$20 million: Newly Formed SPE; > $20 million: Newly Formed SPE with non-consolidation and independent director(s)

Recourse: Non-recourse with standard bad boy carve-outs to borrower(s) and indemnitor(s)

Term: 5, 7 and 10-years

Amortization: Maximum 30-years

Interest Rate Index: Swap Rate

Maximum LTV: 75%

Minimum DSCR: Commercial: 1.30x; Multifamily: 1.25x

Minimum Debt Yield: Commercial: 8.5%; Multifamily: 8.0%

Prepayment:Defeasance or Yield Maintenance (Lockout: 2 years from securitization; Open: 3-months prior to maturity)

Loan Fees: Par

Reserves & Structural Enhancements:

Reserves: RE Taxes, Insurance, Capital Expenditures, Tenant Rollover and Ground Rent Structure; Lockbox/Cash Management with default and DSCR cash sweep triggers

Closing Timeline: 45 - 60 days

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Better TogetherCMBS – Fixed Rate Capped Cost Program

Loan Size: $2.0 million to $7.5 million

Property Types: Office, Retail, Industrial, Multifamily, Self-Storage, Manufactured Housing

Borrower: Newly Formed Single Purpose

Recourse: Non-recourse with standard bad boy carve-outs to borrower(s) and indemnitor(s)

Term: 5, 7 and 10-years

Amortization: Maximum 30-years

Interest Rate Index: Swap Rate

Maximum LTV: 75%

Minimum DSCR: 1.30x

Minimum Debt Yield: 8.50%

Prepayment: Defeasance (Lockout: 2 years from securitization; Open: 3-months prior to maturity)

Deposit/Processing Fee: $27,500 fixed lender fees (third party reports, legal, etc.) and $5,000 processing fee

Closing Timeline: Within 60 days

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Better TogetherRecent Deals – CMBS

10-Year Fixed Rate Financing

$5,750,000Multifamily

Richmond, VACMBS

Perry Place Apartments


$23,500,000Self-StorageTustin, CA

CMBS

I-5 Storage

$9,862,500Industrial Warehouse

Lenexa, KSCMBS

Renner Commerce Center




$9,975,000Suburban OfficeVictorville, CA

CMBS

Bear Valley Business Center

$16,575,000Extended Stay - Hospitality

Austin, TXCMBS

Residence Inn Austin


$20,000,000Grocery-Anchored Retail

Yorktown, VACMBS

Village at Kiln Creek


$13,514,000Anchored RetailStaten Island, NY

CMBS

Coral Island Shopping Center


Intellicenter

$34,000,000Suburban Office

Tampa, FLCMBS

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Better Together

Mortgage Banking - Life Company Financing, Debt Funds & Mortgage REITs

Investor Placement

KBREC’s relationships includes both correspondent and direct access to more than 30 Life Insurance Companies as well as Debt Funds and Mortgage REITs.

The centralized origination platform provides national account recognition and allows us to originate loans in all 50 states.

KBREC’s ability to leverage KeyBank’s balance sheet provides a competitive advantage in the market place, specifically: Ability to participate in loans with lenders Ability to close quickly by table funding on our own balance sheet

Loan Structures Fixed Rate Fixed and Floating Rate Credit Facilities

Loan Terms Loan Amounts from $1MM to $100MM+ 3 – 25 year term with 20 – 30 year amortization Typically Non-Recourse, with standard carve-outs 30/360 Interest Calculation (typically) Flexible prepayment structures available Rate Lock at Application Forward rate lock capabilities up to 12 months depending on the transaction

Credit Tenant Lease

A/B Note Structure & Mezzanine Financing Construction-to-Permanent Mortgages

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Better TogetherRecent Deals – Investor Placement


$20,000,000CBD OfficeBoise, ID

Life Company

Wells Fargo


$32,958,000CBD OfficeAkron, OH

CTL Execution

First Energy

$6,400,000Mixed Use

Snohomish, WALife Company

Kla-ha-ya Village




$18,900,000GSA Office Portfolio

VariousBank Execution

Boyd Watterson Portfolio

$12,600,000Retail – Grocery Anchored

Plano, TXLife Company

Independence Square


$46,050,000GSA Office Portfolio

VariousBank Execution

Boyd Watterson Portfolio II


$25,800,000Multifamily – Low RiseRedondo Beach, CA

Life Company

Novella Redondo


Courvoisier Centre

$106,500,000CBD OfficeMiami, FL

Life Company

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Better TogetherAgency Multifamily Financing

Fannie Mae* Freddie Mac* FHA/HUDOfficial Name Fannie Mae (Federal National Mortgage Association or

FNMA)Freddie Mac (Federal Home Loan Mortgage

Corporation or FHLMC) Federal Housing Administration

Type of Entity Government-sponsored enterprise (GSE) that is directed by FHFA

Government-sponsored enterprise (GSE) that is directed by FHFA

Government entity that is a division of HUD (U.S. Dept. of Housing & Urban Development)

Lenders Delegated Underwriting & Servicing (DUS) Lenders Program Plus Seller/Servicers Multifamily Accelerated Processing (MAP) – Multifamily;Lean – Healthcare

Locations National license Regional licenses All U.S.

Loan Purpose Acquisition, Refinance, Mod Rehab Acquisition, Refinance, Mod Rehab Acquisition, Refinance, Substantial Rehab & New Construction

Execution Type Early Rate Lock, Immediate Funding Early Rate Lock, Immediate Funding Immediate Funding

Target Deal Size $5 million & up $5 million & up $3 million & up

Loan Terms 5, 7, 10, 15, 20, 25, 30 years 5, 7, 10, 15, 20, 25, 30 years Up to 35 years – existing;40 years – new construction*

Amortization 30 years or interest only 30 years or interest only Coterminus

LTV Maximum 80.00% (90% LTC) 80.00% (90% LTC) 80.00% to 90.00% - Existing (75.00% - 90.00% LTC) Construction

Property Types Multifamily, Student, Manufactured, Affordable and Senior Housing

Multifamily, Student, Manufactured, Affordable and Senior Housing

Multifamily, Affordable Housing, Senior Housing, Healthcare, Hospitals

DSC Minimum 1.25 fixed rate, 1.10 variable rate 1.25 fixed rate, 1.10 variable rate (lower for Affordable Housing) 1.11 – 1.18 Multifamily; 1.45 Healthcare

Collateral Property Cash required for early lock and standard

rate lock LOC accepted for gap collateral

Property Cash required for early lock and standard rate lock LOC accepted for gap collateral

Property

Guaranty Requirement Non-recourse except for standard carve-out Environmental Indemnity

Non-recourse except for standard carve-out Environmental Indemnity

Non-recourse

Application Fee $25,000 $25,000 + 0.10% – 0.15% (of loan amount) review fee 0.30% of loan amount – HUD; + $5,000 – KeyBank

Origination Fee 0.25% – 1.00% (depending on loan size) 0.25 – 1.00% (depending on loan size) 0.50% – 2.00% (Negotiable)

Interest Rate Fixed: Spread + applicable Treasury Floating: Spread + Libor

Fixed: Spread + applicable Treasury Floating: Spread + Freddie Mac Reference Bills

Fixed rate

Early Rate Lock Deposit 2.00% 2.00% 0.50%

Reserves Generally taxes, property insurance and replacement reserves

Generally taxes, property insurance and replacement reserves

Taxes, property insurance, Mortgage Insurance Premium (MIP) and replacement reserves

The above LTV Maximum and DSC Minimums are based on conventional multifamily and manufactured housing loans. Student Housing and Seniors Housing loans have lower LTV maximums and higher DSC minimums. Affordable Housing has higher LTV maximums and lower DSC minimums.* 40 years plus construction term..

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Better TogetherFannie/Freddie Affordable Programs

Borrower: General Partnerships, Limited Partnerships, Corporations, & Limited Liability Companies.

Recourse: Non-recourse with standard bad boy carve-outs to borrower(s) and guarantor(s)

Term: 5, 7, 10, 12, 15, 18, 20, 25, & 30-years

Amortization:Typically 30 years. Maximum 35-years for new construction or substanation rehab properties.

Interest Rate Index: 10-year treasury

Maximum LTV: 90% for new LIHTC, 85% for Bridge to Resyndication, 80% for all others.

Minimum DSCR: 1.15x for new LIHTC, 1.0x for Bridge to Resyndication, 1.20x to 1.25x for all others.

Minimum Debt Yield: NA

Prepayment:Defeasance or Yield Maintenance (Lockout: 2 years from securitization), last 6-months Open at 1% with last 3-months Open at par.

Loan Fees: Typically 1%. Negotiated for large transactions over $20MM.

Reserves: Reserves: Real Estate Taxes, Insurance, Replacement Reserves, Ground Rent if applicable.

Closing Timeline: 60-days, up to 120-days for Tax Exempt Loan executions.

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Better TogetherFHA Affordable Programs

Borrower: General partnerships, limited partnerships, corporations, & limited liability companies

Recourse: Non-recourse

Term: Up to 35 years existing property; 40 years plus construction for new construction and rehab

Amortization: Coterminous

Interest Rate Index: NA

Maximum LTV: 90% for projects with 90% or greater rental assistance; 87% for other affordable projects

Minimum DSCR: 1.11 for projects with 90% or greater rental assistance; 1.15 for other affordable projects

Minimum Debt Yield: NA

Prepayment: Negotiable; typical is no lockout and a 10-1 prepayment penalty structure

Loan Fees: 0.50% - 2.00% (negotiable)

Reserves: Real estate taxes, property insurance, Mortgage Insurance Premium (MIP) and replacement reserves

Closing Timeline: 45 days after receipt of Firm Commitment from HUD

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Better TogetherRecent Deals - Multifamily

Freddie Mac

$215,000,000Affordable/Commercial

Boston, MA

Harbor Point on the Bay


Syracuse, NY

The Meadows

Freddie Mac

$20,071,000Garden-style Multifamily

Lexington, MA

Residences at Captain Parker

Freddie Mac

$1,313,000Manufactured Housing

Milwaukee, WI

Valley Mobile Home Park

CMBS

Fannie Mae

$13,219,000Affordable Housing

Plainfield, IN

Gladden Farms

FHA


Wilmington, NC

The Park at Three Oaks

Fannie Mae

$84,255,000Student Housing

Various Locations

Pierce Portfolio


San Mateo, CA

Leslie Towers

FHA

key fnfg pitch book - commercial multifamily

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