Working on behalf of a longtime client, McBride Capital placed debt for the refinance of Helena Apartments and Tillamook Street Lofts. The 10-year, non-recourse loan encumbers both properties and features release provisions to split the properties if necessary. Full term interest only payments were negotiated to maximize the cash flow over the term of the loan.
The two properties are comprised of 69 units and both properties recently stabilized and were refinanced out of construction loans. This cross-collateralized loan was placed with a CMBS lender. CMBS has been quiet for multifamily lending over the past few years, a market dominated by the agencies, banks, and HUD. However, recently CMBS lenders have been able to compete with the agencies on pricing, proceeds, and long term interest only periods.
A 45-day close was made possible with expedited third party reports, a savvy and sophisticated borrower who responded quickly to requests, and a lender who worked diligently to honor the desired closing timeline as well as leverage and pricing indicated in the application.
The deal team was led by McBride Capital CEO, Ken McBride and Managing Director, Danny Natsch.