Funding Purpose
Tauro Capital Advisors, Inc. was engaged on n exclusive basis to place debt for the acquisition of a multifamily property as part of a 1031 exchange.
Property Description
The property consists of 28, 2 bedroom units near a major city and university. Rent is currently below market on this asset.
Sponsors
Sponsors have built a robust real estate portfolio over the past 10 years while managing a family member’s portfolio. Both consist of small, LA multifamily properties.
Challenges
- 1031 exchange deadline was fast approaching.
- Capital expenditures were ongoing to bring the units up to market rate.
Solutions
- Funding secured with a lending source that provided terms based on the value of future rents.
Funding
- Loan to Value: 60%
- Interest Rate: 3.75%
- Amortization: 30 Years
- Term: 10 Years
- Recourse: Payment guarantee
- Prepayment: No penalty
