Less than 1 year ago we had previously financed this property for the buyer utilizing a bridge loan product. The property was not stabilized and needed some repairs so a short-term bridge loan was structured at the time of acquisition, but now we were working on the take out loan with new agency financing for the borrower.
This was not an easy task on this transaction we had some issues on borrower's net worth which we got the lender to grant an exception on, but we really needed the appraisal to come in strong. Almost 50% of the properties tenant base had been turned since the time of acquisition and the remainder received increase notices, and the property underwent some capital improvements on units prior to leasing out. There was a lot of moving parts to this deal.
We were able to structure a 7 year fixed with 3yrs I/O at 5.45% rate and with a 3,3,2,2,1,1,1% prepay. The property appraised for 1.2 million greater than from the time of acquisition. HOLY MOLY this was great news. We closed the loan 1 day before it matured. Borrower was happy as he should be, we pulled a rabbit out of the hat on this deal. LOL. All kidding aside all parties worked together like top notch professionals and got the job done.