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 invested yield curve made short term floating rate unattractive, and an alternative solution was needed. Furthermore, timing to close was delayed so that the property could achieve requisite occupancy numbers.