ValueXpress arranged a $4.2-million CMBS conduit loan on a 71-unit multi-family garden apartment property located in Bowling Green, Kentucky. The property consists of ten two-story apartment buildings. The property, constructed in 2007 on a 6.4-acre site, was 100% occupied at closing. The transaction was structured with a 10-year term and a 30-year amortization schedule. The loan provides a fixed rate during the entire term.
The property was originally developed to be sold as condominiums, but it has been operated as a rental property since opening. The units are all very desirable three-bedroom, two-and-one-half bathroom layouts that have resulted in consistently high occupancy since opening. The property is located in a suburban section of Bowling Green, northwest of downtown. The area is a mix of residential and supporting commercial and retail development.
“The transaction was challenging in that the property had multiple years of delinquent property taxes stemming from a property assessment disagreement between the sponsor and the tax assessor,” explained Jim Brett, the ValueXpress underwriter on the transaction. “This precluded many other lenders from closing the loan; however, with proper explanation and supporting documentation, we were able to get the loan approved and funded.”
“This transaction is particularly rewarding as it was referred to us by a Commercial Capital Training Group (CCTG) graduate,” noted Michael D. Sneden, Executive Vice President at ValueXpress. “The grad carried the ball and was well rewarded for his efforts. And he has received additional transactions from other parties involved in the transaction, including borrower’s counsel and the banker that was paid off. This is a testament to the success of the transaction.”