Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to find acquisition financing for a student housing multifamily property.
Property Description
The property is a 16-unit multifamily building in the Southwestern US just off campus from a major university.
Sponsors
The sponsors are well-versed in real estate investing with a portfolio of multifamily properties in Los Angeles, and purchased this property as part of a 1031-exchange.
Challenges
- There’s high turnover in the building since 40% of the resident are students.
- The sponsor was up against the 1031-exchange deadline.
Solutions
- A loan was secured through a smaller lender that was able to provide good terms meeting the client’s requirements.
Funding
- Loan-to-Value (LTV): 70%
- Amortization: 30 Years
- Term: 15 Years
- Recourse: Non-recourse
- Prepayment: No penalty
