Funding Purpose
Tauro Capital Advisors was engaged on an exclusive basis to place a loan for the cash-out refinance of an 81-unit multifamily asset in the Southern U.S.
Property Description
The property was purchased in May 2021 and includes completed renovations featuring painting, floors, parking lot, laundry room, and a leasing office.
Sponsors
The sponsors are a repeat client, totaling five fundings by Tauro. They are real estate professionals acquiring class B/C value-add assets in the Southeastern and Midwestern region. Tauro has secured funding for five of their current assets and has acted as an advisor to the group to continue their portfolio growth with target AUM with over 1,000 units.
Challenges
- Rising interest rates limited take-out capital post-rehab
- Insurance market hit with geographical losses, elevating carrier premiums
Solutions
- Tauro able to source and lock interest rate 90bps below initial LOI
- Tauro worked with lender to obtain insurance waivers on specific coverage, thereby increasing sponsor cash out proceeds
Funding
- Loan-to-Value (LTV): 65%
- Interest Rate: 5.37% Fixed
- Amortization: 30 Years
- Term: 10 Years
- Recourse: Non-Recourse
- Prepayment: Yield Maintenance
