ValueXpress Obtains $1.33-Million Fannie Mae Small Balance Loan to Refinance a Maturing CMBS Conduit Loan

ValueXpress obtained a $1,332,500 first mortgage loan that was utilized to refinance a CMBS conduit loan that was set to mature in September. The Mississippi borrower is a long-time client of ValueXpress as the firm has provided ten CMBS conduit loans over a 10-year period.

“We explained to the client that they should start the process early, which the client agreed to do,“ commented Jay Bhakta, a senior loan originator who represented ValueXpress in the transaction. “As it turns out, the loan can only be closed on the first of the month without incurring double interest payable to both the old CMBS lender and the new lender,” explained Bhakta. “The transaction was further complicated by the subject loan being cross-collateralized with a smaller property that did not qualify for Fannie Mae financing. We coordinated a local bank loan on the smaller property to be closed simultaneously on the first day of the month with the subject loan,” commented Bhakta. The new loan carried a rate below 5.5% and provided a 10-year term based on a 30-year amortization schedule.

The property is a 64-unit class “B” garden-style apartment complex located in Brookhaven, Mississippi. The property is 98% occupied and has been owned and managed by the borrower for over 10 years.

“Until the CMBS conduit market returns to normal, we will continue to provide viable options through Fannie Mae, Freddie Mac and HUD 223(f) to provide attractive financing alternatives to our existing and new clients,” noted Michael D. Sneden, Executive Vice President at ValueXpress.

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This entry was posted in Michael D. Sneden, The Banker's Mortgage Conduit, Valuexpress and tagged . Bookmark the permalink.

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