Funding Purpose
Rate and term refinance taking advantage of historically low interest rates. Removing future interest rate risk, evidenced recent treasury volatility and inflation expectations.
Property Description
146 unit multifamily property consisting of 1, 2 and 3 bedroom homes originally built in the 1980’s.
Sponsors
The sponsors are experienced Real Estate investors.
Challenges
- Low Interest Rate Target Interest Rate Volatility
Solutions
- Created a market among lenders to compete for the business resulting in low and aggressive interest rates making the rate and term refinance economically viable. Rate volatility required team grit and focus to execute with the best terms.
Funding
- Loan Amount (LTV): $ 12.3M
- Interest Rate: 3.1%
- Amortization: 30 Y
- Recourse: None
- Interest Only: 5 Y
