Transaction Details
Cash Neutral 4 Unit
$1,335,000
Los Angeles, CA
Cash Neutral 4 Unit
- Project Type: Cash Neutral 4 Unit
- LTV: 80%
- Interest Rate: 6.875%
- Amortization: 30 Years
- Term: 30 Years
- Prepayment: 3/2/1
- Guaranty: Recourse
Transaction Overview
MBP engaged a borrower facing an upcoming maturity on a renovation loan cross collateralized by two four-unit multifamily properties in Los Angeles, CA. The borrower initially utilized a high-interest rate bridge acquisition loan to acquire both properties under a single facility, which included renovation funds intended to support their business plan of adding an additional bedroom and bathroom to each unit.
As the renovation progressed, the borrower sought strategic guidance to navigate a complex split payoff structure and identify a lower cost bridge lender to complete the renovation of the second property.
This particular transaction involved one of the two properties, which had completed its renovations and was fully rent ready. MBP arranged a DSCR loan to replace the existing high-cost bridge debt, partnering with a trusted lender known for reliable execution, competitive origination fees, and low closing costs. By working with a lender willing to underwrite below a 1.20x DSCR, the borrower achieved maximum leverage, paying down more than 70% of the cross collateralized note.
Beyond structuring the financing, MBP also delivered added value during the appraisal process. When the initial valuation came in below expectations, our team conducted independent due diligence and successfully challenged the appraisal, increasing the price per unit by $25,000.
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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