Eyzenberg & Company arranged a unitranche preferred equity and senior debt package to effectuate the pay off of a general partner buy a foreign limited partner on a mid-lease up multifamily property in Port Orange, FL.
Challenges
The general partner was seeking to exit a completed development mid-lease up while the limited partner desired to complete the stabilization of the property and hold until a less volatile capital markets environment. Since the limited partner has no domestic assets, they were not able to directly provide the balance sheet requirements necessary to secure a new senior loan with the GP. Furthermore, a rising interest environment coupled with escalating operating costs was making it harder to qualify for the requisite financial metrics. The closing was very time sensitive as the expiring interest reserve on the original construction loan would have triggered carry guarantees for the general partner.
