Progress Capital Secures $3 Million Refinance for Multifamily Portfolio
Kathy Anderson and Caillin Boles arranged a $3,000,000 loan for Novus Equities to refinance four multifamily buildings located in East Orange, NJ. The properties consist of 25 residential units in total and include a ground floor garage containing 44 parking spaces.
CHALLENGE: During the Phase I site visit, the environmental company reported (2) cases of environmental findings that were since closed according to their records. The Phase I identified two Underground Storage Tanks (USTs) for two of the properties.
SOLUTION: Progress Capital contacted the state to retrieve the previous owner’s remediation documentation. Due to COVID-19, locating these documents and having the state release them was difficult. Once obtained, the bank was provided with the UST Closure Documentation and No Further Action (NFA) Determinations for the two properties and the loan closed.
Kathy and Caillin negotiated the following loan terms with Affinity Federal Credit Union:
- $3,000,000 Loan Amount
- 3.75% Interest Rate
- 5 Year Fixed Rate
- 15 Year Term
- No Prepayment Penalty
The loan proceeds were used to refinance the existing mortgage balance on the properties with a significant cash out to expand their portfolio.
The property is located in the heart of East Orange, NJ and its immediate surroundings include other residential properties, retail stores, restaurants, and parks. The building is also located in close proximity to numerous major educational institutions such as NJIT and Rutgers University Newark Campus. Additionally, the location provides easy access to a number of commuting outlets including the Garden State Parkway, Interstate 280, and is just blocks away from the New Jersey Transit Brick Church station.
Progress Capital is a commercial real estate advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. Since 1990, we consistently get our clients to the closing table… plain and simple!