Funding Purpose
Tauro was engaged to source debt on a refinance of a multifamily property owned by an investor with a perm loan coming due soon.
Property Description
The multifamily asset consists of 7 occupied units and is located in San Diego. 5 of the 7 have already been significantly renovated, and the plans are ready for the remainder.
Sponsors
The sponsor is an LLC owned by 2 attorney’s who double as experienced real estate investors and operators with a portfolio along the Southern California coast and Hawaii.
Challenges
- Original debt term was quickly approaching, and a refinance was needed urgently.
- Buyer needed max LTV to payoff existing loan.
Solutions
- Tauro negotiated an earnout with the lender when the two ADU’s are complete.
Funding
- Interest Rate: 5.75%
- Fixed: 3/6 ARM (7 year total term)
- Amortization: 30 years
- Interest Only: 1 year
- Prepayment: No penalty
