Borrower:

BRT RLOC LLC, a wholly-owned subsidiary of BRT Realty Trust.

Guarantor:

BRT Realty Trust has guaranteed the payment and performance of BRT RLOC’s obligations under the transaction documents.

Lenders:

Capital One N.A. (and the other lenders from time-to-time that are party to the transaction documents).

Loan Type:

A senior secured revolving facility (funds can be borrowed, repaid and borrowed again, subject to the payment of breakage fees and compliance with other terms and conditions of the facility).

Amount of Facility:

Subject to compliance with specified conditions, our subsidiary may borrow the lesser of $25 million or the borrowing base. The borrowing base is at any time, and subject to specified limitations, the sum of:

(i) for each eligible pledged receivable secured by retail, office or multi-tenant or multi-family housing with a debt yield (as described) of:

·                  at least 8% or more, the outstanding balance of such receivable multiplied by 65%, as determined by Capital One in its sole discretion; and

·                  less than 8%, the outstanding balance of such receivable multiplied by 50%, as determined by Capital One in its sole discretion, and

(ii) for each eligible pledged receivable secured by income producing hotel properties with a debt yield, of at least 12%, the outstanding balance of such receivable multiplied by 40%, as determined by Capital One in its sole discretion.

Debt yield is the percentage equivalent of the quotient obtained by dividing the net operating income of the mortgaged property by the amount of the related mortgage loan.

Use of Proceeds:

The funds borrowed may be used to fund eligible commercial mortgage loans receivables and for the borrower’s general corporate purposes.

Maturity Date:

June 2014, subject to our right, upon satisfaction of specified conditions, to convert the amount outstanding to an 18 month term loan.

Interest Rate:

The greater of (i) 4% plus LIBOR (30, 60 or 90 days, as selected by us) and (ii) 5.5% per annum.

Fees:

We are required to pay a fee of (i) $82,500 on each of June 22, 2011, 2012 and 2013, (ii) if we convert the facility to a term loan, an amount equal to 0.5% of the outstanding principal amount of our outstanding borrowing and (iii) $1,500 for each loan to us under the facility.

Security:

All pledged receivables included in the borrowing base or otherwise pledged to Capital One and the proceeds therefrom.

Covenants:

The transaction documents contain various (i) restrictions, including those restricting the transfer of all or substantially all of our assets, completing specified business combinations, entering into transactions with affiliates and making certain payments after an event of default and (ii) covenants, requiring among other things, maintenance of adequate levels of capitalization and insurance. In addition,

·                                          BRT Realty Trust is (i) required to maintain on a quarterly basis and on a consolidated basis, net worth of not less than $100 million and liquidity of not less than $7.5 million, in each case as calculated pursuant to the loan and security agreement and (ii) prohibited from incurring debt, with specified exceptions, in excess of five percent of its net worth.

·                                          BRT RLOC is (i) required to maintain a debt service coverage ratio and a collateral coverage ratio of not less than 1.5 to 1.0, in each case as calculated pursuant to the loan and security agreement and (ii) prohibited from incurring debt, with specified exceptions.

Servicing:

BRT Realty Trust will service the assets and receivables of BRT RLOC.

Exhibit

No.

Title of Exhibit

10.1

Loan and Security Agreement, dated as of June 22, 2011, among BRT RLOC LLC, as borrower, BRT Realty Trust, as guarantor, BRT Realty Trust, as servicer, Capital One, National Association. as agent, Capital One, National Association, as custodian, and the lenders from time-to-time party thereto.

10.2

Guaranty dated as of June 22, 2011, by BRT Realty Trust in favor of Capital One, National Association.

10.3

Account Control Agreement dated as of June 22, 2011 among Capital One, National Association, BRT RLOC LLC, and Capital One, National Association, as agent.

10.4

Revolving Loan Note dated as of June 22, 2011.

10.5

Servicing and Asset Management Agreement between BRT Realty Trust and BRT RLOC, LLC.

10.6

Custodial Agreement, dated as of June 22, 2011, among Capital One, National Association, as custodian-BRT RLOC LLC, BRT Realty Trust, as servicer, and Capital One, National Association, as agent.

99.1

Press release dated June 23, 2011.

BRT REALTY TRUST

Date:    June 23, 2011

By:

/s/ David W. Kalish

David W. Kalish

Senior Vice President