Placed fixed-rate permanent loan and preferred equity to acquire a value add 287-unit apartment complex in Virginia Beach, VA.
A steadily rising interest rate environment and volatile end-of-year reinsurance market threatened to impact underwriting metrics prior to closing. A reduction in senior loan proceeds necessitated the integration of preferred equity into the capital stack. An inverted yield curve made short-term floating rate unattractive, and an alternative solution was needed. Furthermore, the timing to close was delayed so that the property could achieve the requisite occupancy numbers.