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Building

Transaction Details

Jamestown, KY property
Jamestown, KY property

Cash Out Multifamily

$2,655,000

Jamestown, KY

Cash Out Multifamily

  • Project Type: Cash Out Multifamily
  • LTV: 80%
  • Interest Rate: 7%
  • Amortization: 30 Years
  • Term: 10/1
  • Prepayment: 1/1
  • Guaranty: Recourse

Transaction Overview

MBP was approached by a borrower to help find a high leverage, cash out refinance solution to provide some additional liquidity for a future acquisition. The borrower expressed his current frustrations with obtaining the refinance as there were many hurdles. 1. Out of state Sponsorship, 2. Extremely Tertiary Market, 3. Other partners above 20% ownership not wanting to sign recourse, and 4. The proceeds needed could not cover debt service without a proforma underwrite to the next HAP Multifamily Contract increase.

Recognizing the strong sponsorship and historical performance, MBP was confident in finding a solution. Since this was a HAP-covered multifamily property, MBP anticipated local bank appetite. The team identified a local community bank seeking additional Federal CRA credits. Because of this need, the bank was willing to get aggressive on LTV, amortization, and even underwrite to the projected future cash flow.

However, this deal wasn’t without challenges. Due to the limited number of HAP multifamily properties in the area, the appraiser struggled to find comparable sales, resulting in a lower-than-expected valuation. MBP sourced comparable properties from surrounding towns to justify the necessary value. After further discussion, the appraiser agreed with the revised valuation, allowing the borrower to receive the amount originally underwritten.

MBP specializes in debt and equity placement for all asset classes. Our extensive network of unique capital sources in development and permanent financing and extensive capital markets knowledge allows us to tackle a wide variety of transactions, regardless of complexity or size, to benefit our clients.

MBP has a team of dedicated and experienced finance professionals with you at every step. We are consistently improving and expanding our capital market relationships and are committed to exceeding our client's expectations through these relationships, innovative solutions, and outstanding work ethic.

Intermediaries Team

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