ASSIGNMENT:

Our Title Rep Robert Gomez with WFG Title whom we have been working with for over 25 years, referred us to one of his long term clients who wanted to refinance his office building. Like any new assignment we had an introductory call to learn more about the borrower's goals and overall objectives and identify any potential hurdles.  In this meeting we learned about the current loan balance, his current interest rate and existing loan terms. The borrower mentioned he would like to obtain some cashout, and he sent us his lease summary and operating history for our review. We were surprised to learn of the terrible loan someone had placed him in and it was clear it was originated by someone who didn't know what they were doing. Now it was time for us to deliver the kind of results that a borrower can expect from ALB Commercial Capital.

CHALLENGE:

We collected everything that we would need from the borrower and we were confident that we could deliver much better loan terms than what he had, but also understood that the biggest challenge was that multi-tenant office buildings like this were really tough to find lenders willing to finance in the current commercial lending market. Banks were shying away from financing office buildings unless it was a medical office building. There were other bumps in the process that were identified and handled, like an unsatisfied judgement, cleaning up a title report, negotiating with lender on environmental reports, and negotiating not requiring executed SNDA's to be recorded.  When you work with ALB their team manages the entire process all working together to get the deal closed.

SOLUTION:

ALB has long lasting relationships with many lenders and for this transaction we sought out a credit union and together we worked through all hurdles and got the deal closed. Although the property was a multi-tenant office building it was a low leverage transaction and we pointed out other notable strengths in the transaction.  In the end what we delivered was an interest rate of 6.50% fixed for 5 years to then reset for another 5 year fixed with a 30 year amortization and due in 10 and with NO PREPAYMENT PENALTY.  The loan required the borrower to maintain a banking relationship with the lender but the new member account was unrestricted allowing him to use the funds as needed.  How can you not be happy from going from a 25 year amortized loan that had a rate of 9.75% to the loan that we structured. ALB Delivered!