Funding Purpose
Provided acquisition financing for the purchase of a Student Housing property in the Southwest. This was one of three properties that the sponsor purchased in a 1031 exchange.
Property Description
Luxury boutique cottages within a mile of a prominent state university. Highly desirable location, subject property is 100% occupied.
Sponsors
Experienced family owned and operated real estate company based out of CA. Sold apartment complex in Los Angeles to take advantage of the higher yields out of state.
Challenges
- Needed to close by end of year.
- Not enough parking spots.
Solutions
- Worked diligently with bank to meet deadline.
- Re-traded for a lower purchase price due to parking issue.
Funding
- Loan to Value: 67%
- Interest Rate: 3.99%
- Amortization: 25 years
- Term: 7 years
- Recourse: Yes
- Interest Only: None
