Placed a fixed-rate permanent loan to recapitalize three garden apartment rental communities – totaling 604 units – located in Covington, GA, Dothan, AL and Robinsonville, MS.
Challenges
Client desired to repatriate capital while retiring a bridge loan prior to completing the full value-add turnaround strategy. Furthermore, the well-performing properties were located in tertiary submarkets.
Solutions
Conducted a comprehensive marketing process to identify a lender willing to provide an immediate cash-out option and fund the balance of capex improvements. Switched loan structure from bridge to 10-year fixed rate and identified a Fannie Mae DUS lender familiar with the sponsor and the markets. The loan featured more upfront proceeds than bridge lenders were willing to provide, giving the client increased flexibility regarding future renovations and the repatriation of capital.
sschumer@Eyzenberg.com
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afriedman@eyzenberg.com
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