Structured and arranged a non-recourse fixed rate loan for the acquisition of an 80-unit multifamily property in Charleston, South Carolina.
Challenges
Sponsor was seeking a non-recourse acquisition loan to hedge against rapidly escalating interest rates. Though the property was 97% leased at contract signing its occupancy dropped during due diligence due to a lackluster leasing initiative.
Solutions
Eyzenberg & Company approached a targeted group of lenders ultimately awarding the opportunity to a fund manager willing to provide fixed rate financing and recent market experience.
Though the drop in vacancy threw off multiple financing metrics, Eyzenberg & Company worked with the lender to structure contingent reserve accounts to maintain a similar level of proceeds on a renegotiated sales price.
