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$33.3MM Build for Rent Recapitalization | Myrtle Beach, SC

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Eyzenberg & Company arranged a senior secured bridge loan to recapitalize a mid-lease up 82 unit Build for Rent community in Myrtle Beach, SC

Challenges

The Sponsor was seeking to recapitalize the property to cover a higher than expected interest reserve requirement for the senior construction loan due to increases in SOFR. Furthermore, any extension would require a further funding for a current pay requirement of the existing preferred equity provider. An influx of new deliveries was providing headwinds for leasing efforts necessitating an increase in expected concessions.

$33.3MM Build for Rent Recapitalization | Myrtle Beach, SC

Solutions

Eyzenberg & Company leveraged an existing personal relationship at a new lending start up to provide max leverage. Working with the lender an analysis was provided to demonstrate the short term impact of higher concession during the lease up stage in peak season. Furthermore, new senior and preferred equity reserves were established enabling the property to stabilize post leasing season. Further leveraging its existing relationship Eyzenberg was able to remove all superfluous costs from the pay of amount of the current lender.

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