Myrtle Beach, SC – 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 leading Commercial Mortgage Brokerage Firm specializing in arranging debt for commercial real estate owners, operators and developers. Since 1990, Progress has secured loans in excess of $40 Billion and directly funded over $100 Million. With 25 years of industry leading experience, Progress Capital has an unrivaled network of lending partners and capital market relationships allowing us to provide you with flexible custom financing solutions.
We get you to the closing table – plain and simple – #thatsPROGRESS