Funding Purpose
Tauro Capital Advisors was engaged on an exclusive basis to place a loan for the refinance of a 3 property portfolio.
Property Description
The three multifamily properties have 195 units combined, and they’re all located in a major western city. The overall vacancy rate is 3.6% with an average rent/SqFt of $1.42.
Sponsors
The sponsor began investing in multi-family properties in 2012. His current portfolio consists of 9 multifamily properties in the Southwest.
Challenges
- Crime report showed a murder at one of the properties making the lender uneasy.
- Property management failed to accurately document rent roll and cash flow.
Solutions
- Utilized the Advisory Services team to get data on the crime history and reconstruct property financials.
- Back and forth negotiations led to great terms.
Funding
- Loan to Value: 65%
- Interest Rate: 3.5% interest only
- Term: 10 years
- Recourse: Non-recourse
- Interest Only: 10 years
- Prepayment: Yield Maintenance
