|
Remington Financial Group, Inc. secured $5.8 million in senior financing for a Philadelphia-based national apartment owner to refinance and renovate a 103-unit apartment building in Washington, DC. Prior to the property's acquisition, the owner tried to convert it to condominiums, but, after battling two and a half years of tenant-initiated legal opposition and a subsequent failed disposition attempt, the decision was made to keep the property and reposition it as a rental.
At the time RFG became engaged in the project, the property was half percent vacant, in significant disrepair and it had defaulted on its senior financing. RFG overcame these obstacles and quickly secured financing commitments from two prominent banks that were comfortable with the submarket and its ability to support higher rents. The loan provided 100 percent of the costs to refinance existing debt, fund renovation costs and an interest reserve. The pricing was one percent over Prime with a three year term. Once stabilized, the loan will convert to a traditional, competitively priced long term permanent loan. This property was the borrower's fourth financing transaction arranged by RFG.
<< Back To Case Studies |
