Case Study: $24MM Multifamily Portfolio | Recapitalization | Memphis, TN

Structured and arranged a permanent and bridge loan to recapitalize two garden-style multifamily complexes totaling 774 units.

Challenges

Two communities were in varied phases of repositioning, necessitating different debt structure from separate lenders. With its on-site staff and management team making the upgrades and repairs, the borrower had lower-than-market costs for capital improvements, making it difficult to comp out.

Solutions

Identified a fund manager and a Fannie Mae DUS lender familiar with the market and willing to underwrite borrower’s execution strategy. Negotiated shifting requirements to overcome outstanding issues, while preserving original terms. Structured a fixed and floating rate solution from two separate lenders without having to resort to cross collateralization in a less than optimal structure.