Texas

Shahin Yazdi successfully placed a 75% LTV cash-out refinance for a 25-unit Texas apartment building. The subject property was constructed in 1991, and is located in a central Texas tertiary market. The loan is fixed for 10 Years at 5.65%. Challenge: The sponsor was an out-of-state borrower who did not own any other multifamily properties in Texas. The property was also highly leveraged, and the borrower required cash-out, necessitating an LTV of at least 75%. Lenders who would traditionally finance similar buildings were not comfortable with this location at the required leverage. Solution: GSP highlighted the experience of the management company and their portfolio of properties to make the lender comfortable with the stabilized operations and cash flow. Through our extensive capital relationships, we identified an institutional yet non-traditional lender active in this tertiary market. The new Capital Provider gave credit to the extensive list of the Capital Improvements the Borrower had made to the subject property, allowing the Lender to fund beyond their pre-determined LTV constraints.