Rosewood Apartments Perm
StackSource recently arranged financing for the refinance of a 28-unit multifamily located in Pocatello, Idaho. The Sponsors had successfully executed their value-add business plan and had fully leased up the property. They had created substantial equity in the asset and wanted to extract as much as possible because the pre-refi LTV was below 40%. There were a couple of private loans and a line of credit that needed to be paid off through the refinance as well. Given the substantial equity, the Sponsors wanted to maximize cash out, and secure a fixed rate loan with a low interest rate in a rising rate environment. They also wanted prepayment flexibility in case rates decrease in the intermediate future. Director Paul Winterowd was able to secure a regional lender that would go well beyond 100% loan to cost, despite less than 2 years of ownership. Paul was able to close with a 3-year fixed rate term at 5.38% and a 30-year amortization schedule with no prepayment penalty. Now, the Sponsor has satisfied their high interest short term debt and has liquidity for additional projects.