$43MM Multifamily Acquisition | Louisville, KY

Eyzenberg & Company arranged a structured equity solution for the acquisition of a 263-unit multifamily property in Louisville, KY.


With the capital market landscape under pressure from rising interest rates and declining institutional appetite for equity positions in real estate, liquidity was thin for a venture partner for a multifamily property in a tertiary yet growing location in Louisville, KY. Additionally, the run up in interest rates throughout the placement and closing process served to limit the debt solutions available with increasingly higher cost and lower proceed agency financing as the best solution. Furthermore, the
volatility in index rates created a last-minute requirement for additional equity at the final stage to offset the reduced DSCR constrained loan proceeds.



Eyzenberg & Company sourced and structured an equity partner that provided the necessary equity to
acquire and execute the value-add business plan. Utilizing various protectionary mechanisms, the
structure was able to simultaneously address the limitations imposed by a Fannie Mae agency loan as
well as provide comfort on basis protection to the capital provider. The flexibility of the structured
solution allowed for increased proceeds to offset the debt volatility.

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