$32,000,000 LOAN FOR REFINANCE OF MULTIFAMILY PORTFOLIO IN PORTLAND, OR

Continental Partners successfully arranged a $32,000,000 5-year fixed loan to refinance the Portland multifamily portfolio.

Transaction Description

Summary: Continental Partners successfully arranged a $32,000,000 5-year fixed loan to refinance the Portland multifamily portfolio. The Sponsor requested a fixed-rate, non-recourse, interest-only loan to purchase the Portfolio and provide reserves for renovations. The Borrower was only looking for fixed rate financing but did not want to hold the Properties for more than three years which required a Lender with a flexible prepayment option. The Portfolio consists mainly of two and three bedrooms, located in the highly desirable Tigard submarket.

Opportunity: Continental Partners approached a number of Lenders with this request including agency lenders, banks and credit unions. A number of Lenders who quoted the transaction were coming up with a loan amount short of the Sponsor’s requirement given the recent rise in interest rates and due to the bank’s stress rates being too high. The Borrower needed a lender that would be comfortable moving forward with the loan contingent on stabilized occupancy by close of escrow without collection history.

Result: Continental Partners was able to source a Lender who understood the asset, the submarket, and the Sponsor’s business plan, ultimately delivering maximum cash out without any shortfalls in proceeds. The Lender lowered its stress rate to the actual rate of the note, allowing for the bank to deliver higher loan proceeds. Continental was also able to avoid an appraisal issue, by conducting an extensive market survey using rent comps to confirm with the lender the market occupancy and monthly rental rates for the comparable set. The lender ultimately decided to use Continental’s survey as a representation of the market, over the appraisal.