ValueXpress obtained a $4-million Fannie Mae loan approval from its Fannie Mae partner to refinance a 168-unit Class B apartment community property on a 22-acre site that was built in 1975 by the borrower, Cordoba LLC. The property is located in Hampton, VA. The loan will repay a short-term loan in the amount of $3 million and provide for reimbursement of capital improvements utilized to convert the property from landlord-paid HVAC to tenant-paid HVAC. Furthermore, the new loan will provide for a capital improvement reserve to replace kitchens and bathrooms as apartment units turn over. The loan was structured with a 10-year term based on a 30-year amortization schedule, with a fixed rate in the low 4% area.
“This transaction is a follow-on to a Fannie Mae Small Balance loan transaction we recently closed for the sponsor. Based on the positive experience, the sponsor immediately engaged ValueXpress to secure a Fannie Mae loan for this transaction,” explained Michael D. Sneden, Executive Vice President of ValueXpress. “The borrower had applied for $4 million, but we were able to upsize the loan based on a better-than-expected appraisal value.”