Transaction Details
Cash Out 4 Unit
$1,127,250
Los Angeles, CA
Cash Out 4 Unit
- Project Type: Cash Out 4 Unit
- LTV: 75%
- Interest Rate: 10%
- Term: 18 Months
- Prepayment: 3 Months Min Interest
- 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.
This transaction focused on the second of the two properties, which still had a remaining renovation budget to complete the planned conversions. MBP arranged a new 18-month renovation loan to replace the existing higher-cost bridge debt, partnering with a trusted lender who structured the financing to allow the cash out proceeds from the payoff to be allocated toward the interest reserve, optimizing the borrower’s liquidity throughout the renovation period.
To further protect the borrower’s economics, MBP collaborated with three separate lenders to design a structure that eliminated the costly fees typically associated with a payoff split. Through careful negotiation and strategic structuring, MBP was able to secure the appropriate loan amounts across all parties involved while maximizing leverage for the project’s business plan.
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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