ASSIGNMENT:

When this property was purchased a few years back we helped the investor with financing and placed them into a SBA 7A Loan. At the time it was a great solution because the program provided them with the high leverage that was needed in order to complete the purchase. After acquiring the property, the investor infused over $1 million into capital improvements to the building. Unfortunately, due to a changing real estate market and the increase in the WSJ Prime Rate the interest rate was getting in the double digits which is why the investor returned to us to refinance into a better fixed rate commercial loan program.

CHALLENGE:

Although we had trailing rental information from the tenants in the building the investor took almost 2 years in completing tenant improvements to the 50% of the building that they occupied. Because of this we didn't have good historical for the space they occupied, but we did have the income from the other tenants in the building.

SOLUTION:

Despite the lack of historical rental information being reflected in the tax returns the investor/borrower operates a very profitable business.  Therefore, knowing this ALB structured a loan with a small credit union who prefers loans from applicants who are willing to create a depository banking relationship. We ended up with a great fixed loan and even had no prepay just in case in the next couple years rates drop we can help them again.