Commercial Mortgage Lenders: 90% of All-In-Cost Acquisition Loan for Apartment Community in Mid-Atlantic states
This $25 million acquisition loan was closed in 25 days from term sheet signing. Financial Compound worked with a number of commercial mortgage lenders to identify first mortgage and mezannine debt providers that could meet the borrower’s aggressive leverage and quick-close timing constraints. We arranged a 90% of all-in-cost (including purchase price, a $4 million renovation budget, and closing costs), non-recourse foreclosure acquisition financing package for an apartment community in the Mid-Atlantic. Commercial mortgage lenders were able to get comfortable with this transaction’s significant rehab component, below market occupancy, and many moving parts due to the foreclosure. Blended financing terms between the first and mez include: interest rate of 6.95%, loan fees of 1.2%, exit fee of 1.1%, non-recourse, no prepayment penalty after 12 months. Financing closed 25 days after the term sheets were signed.
Commercial mortgage broker Financial Compound was able to quickly identify capital providers that were interested in this transaction and had enjoyed a long-standing relationship with Financial Compound of closing transactions on the terms applied for and within the timeframes specified, giving the borrower an immediate comfort level. With only 25 days to close, there was no room for error. Commercial mortgage broker Financial Compound is able to assist borrowers meet their goals and timeframes through our network of debt, mezz, and equity providers. On this transaction Financial Compound was able to tap one of its close relationships with which Financial Compound had previously funded in excess of $200 million in transactions.