A guarantor came to us requesting a cash-out refinance loan for a 46-unit mixed-use building on a small downtown street near a major university. The owner struggled to secure traditional financing mainly due to lease rollover risk, marginal overall annual income, and sub-optimum mix of residential units based on a high percentage of studios.
APARTMENT BANK LENDING SOLUTION
At Apartment Bank, we were able to structure a loan for the guarantor that provided extensive liquid assets post-close which significantly improved cash reserves and allowed for subject property improvements while maintaining a strong equity position in the property. Upon understanding this customer’s specific needs, we approved the loan based on the borrower’s strong debt-service coverage ratio, good property cash flow and a relatively low LTV.
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