Funding Purpose
Tauro Capital Advisors was engaged on an exclusive basis to place initial funding and an Earn-Out to acquire a 62-unit multifamily property.
Property Description
This asset is a 45,560 SqFt 62-unit multifamily property located in the Southern US. The asset is fully occupied offering 24 1-bed units and 38 2-bed units.
Sponsors
The sponsors are experienced multifamily investors with solid liquidity. Sponsors plan to purchase the property at below-market rents and renovate the units to achieve market rents.
Challenges
- Property is located in a tertiary market, and the asset was low performing.
Solutions
- Found a California-based credit union to fund the loan after Agency and local market lender turned down the loan. Due to the number of properties in client’s current portfolio and non-local borrower respectively.
Funding
- Loan to Value: 75%
- Interest Rate: 4.75%
- Amortization: 30 years
- Term: 5 years
- Recourse: Non-recourse
- Prepayment: None
