Case Study: $28MM Multifamily Property | Recapitalization | Lauderhill, FL

Structured and arranged long-term, fixed-rate senior debt to retire an expiring bridge loan secured by a 352-unit multifamily property in Lauderhill, Florida.

Challenges

After ownership successfully executed its value-add repositioning strategy, the newly renovated complex achieved 90%+ occupancy in less than a year. Ownership required a complete cash out, which was challenging for traditional balance sheet lenders and capped potential proceeds attainable. Furthermore, a challenging neighborhood and limited operating history made it difficult for some lenders to underwrite to maximum proceeds.  

Solutions

Identified a CMBS lender willing to provide maximum proceeds that exceeded traditional multifamily balance sheet lenders and fulfilled ownership’s cash out requirement. Working closely with the lender to get the B-Piece buyer comfortable with the asset, given the limited operating history and other challenges, helped ensure a successful closing.