$6,487,500 LOAN FOR AN APARTMENT BUILDING IN HAYWARD, CA
Continental Partners successfully arranged a $6,487,500 5-year fixed loan to refinance Cinnamon Apartments in Hayward, California.
Summary: Continental Partners successfully arranged a $6,487,500 5-year fixed loan to refinance Cinnamon Apartments in Hayward, California. The Sponsor requested a fixed-rate, non-recourse, interest-only loan to refinance an existing bridge loan and provide cash out to investors. Cinnamon Apartments is a 30-unit apartment complex located just a few blocks from the Bay Area Rapid Transit (BART), within close proximity to the I-580, I-880 and San Mateo bridge./span>
Opportunity: Continental Partners approached a number of Lenders with this request including banks, agency lenders, and credit unions. Due to the lack of seasoning in the rent roll and financials, in combination with the quick ramp up in NOI from the Borrower’s business plan, most lenders were worried about an appraisal issue. Continental made it a priority to go with a lender who didn’t require seasoning and a high LTV threshold of 70%.
Result: As Continental predicted, the appraisal came in short of what was initially projected. Continental’s preparation allowed for loan proceeds to stay intact as the Lender already agreed to a higher LTV constraint which would have otherwise affected proceeds. The lender also did not require any seasoning whatsoever for the asset, allowing for a quick and smooth closing process.