ValueXpress Arranges $4,875,000 CMBS Conduit Loan for the Refinance of a 90-Unit Apartment Complex Located in Homestead, FL

ValueXpress has arranged a $4,875,000 CMBS conduit loan for the refinance of a 90-unit apartment complex located in Homestead, Florida. The community is located just east of State Highway 821, which leads north to Miami and south to the Florida Keys. The property is in immediate proximity to Homestead Air Reserve Base, host to the 482nd Fighter Wing. The Wing has more than 1,500 members, including approximately 1,200 reservists (250 are full-time reservists known as Air Reserve Technicians), as well as 300 full-time civilians.

The property was constructed in 1990 and consists of 22 one-story apartment buildings. Each building typically contains 3-6 units. Unit mix is as follows: 10 studios, 65 one-bedroom/one-bath, 10 two-bedroom, one-bath units and 5 two-bedroom, two bathroom units.

This transaction was underwritten by Jim Brett, head of underwriting at ValueXpress. “The transaction was challenging in that the ownership entity had filed for bankruptcy in 2013, the sponsor had a deed in lieu of foreclosure on another property and the proposed loan proceeds were insufficient to pay off the prior lender,” Brett said.

“To solve the issues, we walked the sponsor through the full disclosure process on the credit matters to get the decision makers comfortable,” notes Brett. “In addition, we provided support to increase the loan amount by $250,000 to cover the existing loan payoff and transaction costs.”

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This entry was posted in CMBS, CMBS Conduit Loans, Commercial Lending, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , , . Bookmark the permalink.

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