About this Transaction
We recently closed an 11 unit apartment refinance in Los Angeles. We were able to arrange a hybrid/fixed loan with the following program highlights:
- 74% loan to value cash out, capped by cash flow
- 7 year fixed 4.25%
- Step-down prepay
- Cash Out on Brand New Construction
- *Short Occupancy Period. See below..
Our customer approached us for a maximum cash out refinance at the beginning of 2016. They had recently completely the development of a brand new 5 unit building and additionally had fully rehabbed and existing 6 units on site; a total of 11 units. The 5 brand new units were fully rented in November/December 2015 leaving us with a short stabilization period on those units. Most lenders require at least 6 months stabilized occupancy of 80% or more, and we found a lender who would consider lending at max LTV based on full market value only within months of the full occupancy. After overcoming multiple hurdles and extending the closing time frame at no fault of ours or the borrower’s, we were able to proceed with a successful closing and perform on our original quote.