Case Study: $36MM SRO Portfolio | Refinance | New York, NY

Structured and arranged long-term, fixed-rate senior debt to recapitalize a seven-property SRO portfolio containing 242 residential units and one retail space.

Challenges

The sponsor, who was historically a bank borrower, desired a non-recourse financing option and requested maximum proceeds for a non-conforming asset class. Additionally, a fire in one of the buildings threatened to derail the closing process.

Solutions

Identified a conduit lender, who through its association with a B-piece buyer, was able to get comfortable with the underlying collateral and mitigate kick-out risk. The non-recourse loan achieved high leverage by cross-collateralizing the portfolio, thereby creating credit enhancement for the smaller assets.