Mezzanine plan that adds up.

RCG Longview, the New York City-based real estate opportunity manager, and Fannie Mae announced the availability of Fannie Mae's DUS PlusTM product, which allows DUS lenders the ability to offer additional mezzanine financing in conjunction with conventional Fannie Mae fixed-rate DUS loans which are between $3 million and $25 million.

RCG Longview will delegate the underwriting of the mezzanine loans to the DUS lenders, and will purchase the DUS Plus mezzanine loans on an exclusive basis from Fannie Mae. This partnership among RCG Longview, DUS lenders and Fannie Mae allows the borrower to have one-stop shopping and eases the execution process.

DUS Plus is available for the acquisition or refinance of multifamily properties. It offers a combined loan-to-value ratio of up to 85 percent and a minimum debt service coverage ratio (DSCR) of 1.10x.

Additional features of DUS Plus include the ability to utilize DUS Supplemental Loans to prepay the mezzanine loan; A mezzanine loan term of up to 10 years, with the first five years at a fixed rate; An amortization schedule of up to 30 years, with interest-only options available.

"Fannie Mae has a proven track record for product development," said Howard Levine, president/CEO of ARCS Commercial Mortgage Co., LP. "The new DUS Plus enhancement is another strong step toward meeting borrowers' needs ... in this case, through a well-priced and thoughtful mezzanine product."

DUS lenders have the delegated authority to underwrite and rate lock both the conventional DUS loan and the mezzanine loan without prior review from Fannie Mae or RCG Longview, creating an effective and streamlined processing and underwriting system. As with all other DUS loans, DUS lenders also handle the closing and servicing for both the senior and mezzanine loans.