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