GSP successfully placed the refinance of a small multifamily asset with a local lender that netted a large return of equity to the Borrower. The nine-unit building is owned by an out-of-state Sponsor. The cash out loan is fixed for 5 years at 4.62% before rolling into a floating rate loan for the remaining 25 years of the term.
Challenge: The Sponsor had experienced the foreclosure of two rental homes in the last three years. As a retired real estate professional, the guarantors’ global cash flow was severely limited and he carried considerable personal debt.
Solution: GSP demonstrated the strong income generated from the subject property to a lender who became comfortable with the leverage and invested the time to review the no-fault credit issues. The Borrower owned the subject property for 20+years and no credit issues prior to the recent downturn. Historical gross income increased annually on the rent controlled asset. All personal debt obligations were retired through this refinance, improving personal global cash flow.
