Apartment & Commercial Property Financing

The Challenge

A 2023-built, 33-unit asset bought out of a distressed-operations situation — depressed rents, deferred items, open permits, and five vacant units. The operator didn't want a bridge; he wanted permanent financing from a real bank — the cheapest, most durable money, and the hardest close in the business: a bank credit committee, an appraisal, title, and municipal permitting, all on one clock. Most lenders see the complexity and decline. We've owned deals like this — so we underwrote the asset, not just the credit box.

How We Closed It

We ran the entire process — sourcing, structuring, and a same-week agency-refinance plan for the exit:

1. 1We shopped the deal to ~60 banks to find permanent terms most lenders wouldn’t offer on a value-add asset.
2. 2We built the credit case — 30+ analyses and models — and packaged it for the bank, the appraiser, and the property manager.
3. 3We negotiated the bank’s spread down from Treasury +300 to +250 bps — a 6.65% rate on a deal others priced as 10%+ bridge.
4. 4We secured $70,250 in seller credits and a 12-month interest-only runway to lease up the vacant units.
5. 5We quarterbacked the close — bank, title, two law firms, insurance — to fund on the purchase-and-sale contract.

The Operator Economics

A bank rate instead of a bridge rate changes the whole hold. On the $3,150,000 loan, permanent bank pricing saves an estimated ~$121,000 a year in interest versus typical bridge debt — and the 12-month interest-only period frees roughly $48,800 of year-one cash flow to lease up the vacant units. The asset was bought below replacement cost with rents well under market, leaving clear value-add upside as leases roll.

Illustrative: interest savings compare the 6.65% bank rate against typical 9.5–11% bridge pricing on $3.15M; not an actual alternative quote. Forward-looking figures are estimates only — every deal varies, and nothing here is a projection or guarantee.