Transaction Overview
The YazLee Group secured $9,390,000 in proceeds for the cash out refinance of two multifamily properties totaling 80 units in Los Angeles. The loans are fixed for a 5 year term and offer 2 years of Interest Only payments. Since acquisition, the Borrower has renovated 46 out of 80 units, released them at higher rents, and added RUBS and laundry income. The selected lender was able to give the Borrower maximum credit for improving net operating income. The Lender was also able to underwrite vacant units at market rent. Although one of the properties required flood insurance, the excess premium had little effect on loan proceeds. The Properties are of masonry construction, but a property condition report confirmed that no earthquake insurance was required. The Lender was able to meet the Borrower’s goal of closing by year end.
