ValueXpress Obtains $3.15-Million Fannie Mae DUS Loan to Refinance a Maturing CMBS Conduit Loan

ValueXpress obtained a $3,150,000 first mortgage loan that was utilized to refinance a CMBS conduit loan 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,“ said 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. “This required an unanticipated additional 30 days to coordinate, but since we had extra time prior to maturity, it did not affect the transaction. In addition, the new loan carried a rate below 6%, while the maturing loan was well over 8%, providing immediate savings by closing early. The property is a 120-unit class “B” garden-style apartment complex located in suburban Jackson, Mississippi. The property is 92% 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 Sneden.

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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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