$7.5 Million Secured with 12-Year Fixed Rate for Newly Constructed Myrtle Beach Multifamily Development
A new client approached Abe Mann, Vice President at Progress Capital, seeking to retire the existing construction debt and enter into a permanent mortgage on a newly completed 84 unit residential townhome community in Myrtle Beach. The unit mix includes (80) 1,300 SF 2-bedroom units and (4) 1,875 SF 4-bedroom units. The 7.4-acre property also features a large gated pool, landscaped gardens and a large outdoor community deck for entertaining.
There were several challenges associated with securing the best financing option for our client:
1. This is the first residential project constructed by the borrower.
2. This is the first residential project to be self-managed by the borrower.
3. The property was not fully stabilized and was in active lease-up.
Despite the challenges, Abe was successful in securing a $7,500,000 non-recourse permanent mortgage to refinance the property prior to stabilization. This allowed the borrower to recapture over $2,100,000 of vested equity. In addition, the loan represents 75% of the property’s completed value and is accompanied by a 12-year fixed rate at 5% based on a 30- year amortization.
Progress Capital is a commercial real estate advisory company serving clients since 1990. With over $40 Billion in closed loans and $150 Million of directly funded bridge loans, we will get you to the closing table… Plain and Simple. #thatsProgress
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