Progress Capital Arranges $5 Million in Refinancing 125 Unit Multifamily Property in Memphis
Abe Mann, Managing Director of Progress Capital secured $5,000,000 to refinance Cane Creek Apartments, a 125 Unit Affordable Housing property located in Memphis, TN.
The 9.79-acre site contains a total of 23 residential buildings that were built in 2003, plus 250 parking spaces. The Property has a LIHTC (Low Income Housing Tax Credit) contract in place with 12 years remaining, which provides the landlord with abated real estate taxes. Rents are in turn capped and deemed affordable.
Abraham Wieder of Supreme Equities acquired the property in July, 2020 for $5,200,000 and immediately implemented a successful capital improvements and management plan to stabilize cash flows.
Abe Mann secured the financing with an Agency lender. Since term sheet signing, there was a 40 basis points increase in the treasury index. Nevertheless, Abe successfully locked the rate 12 basis points BELOW the term sheet rate, receiving an overall reduction of 52-bps of the spread compared to the LOI.
Key Terms provided:
- $5,000,000 subject to 80% LTV
- 3.41% Fixed for 10 Years
- Step-down Prepay
- 30 Year Amortization
- Non-Recourse with carve outs
The city of Memphis is located along the Mississippi River in southwestern Shelby County, Tennessee., famous for the influential strains of blues, soul and rock ‘n’ roll that originated there. Elvis Presley, B.B. King and Johnny Cash recorded albums at the legendary Sun Studio, and Presley’s Graceland mansion is a popular attraction. Other music landmarks include the Rock ‘n’ Soul Museum, Blues Hall of Fame and Stax Museum of American Soul Music.
Progress Capital is a commercial mortgage advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. With over 30 years of experience, we continually prove our value to our clients by securing the best capital options available in the market.