NEW YORK, NY - Avant Capital Partners (AVANT), a leading New York City based commercial mortgage bank that specializes in multifamily financing, closed a bridge loan of $2,853,301 for the acquisition and renovation of a 304-unit apartment complex in Dallas, TX. The loan was based upon 70% loan-to-cost and included the acquisition and renovation costs, as well as an interest reserve. The 24-month interest-only loan was secured through AVANT's relationship with a local bank and carried an interest rate of 7.00%. The loan also featured a 24-month extension option.
"We are seeing an increasing number of buyers take advantage of opportunities to purchase bank-owned assets at a significant discount," says Amy Cheng, AVANT's Chief Underwriter/Closer. "While many of these assets can be acquired at a very low price per door, financing is a challenging aspect of the transaction. These properties often exhibit high vacancy, under market rents and deferred maintenance."
This property was 70% occupied at the time of acquisition, but the attractive price per unit presented the sponsors with substantial upside. The sponsors are experienced multifamily investors with a strong operational presence in the Dallas-Fort Worth market. "In this case, the timing constraints of the required closing date added urgency, so our ability to provide a swift and certain execution was crucial. Our knowledge of the local market and our in-house underwriting and processing enabled us to deliver a conventional multifamily bridge loan for these clients," Cheng continued.
Avant Capital Partners represents a broad range of institutional investors, including Fannie Mae, and is capable of financing stabilized as well as in-transition assets. Properties in transition, like this example of financing distressed multifamily, are typically financed through one of the company's bridge loan programs.
Jocelyn Delifer, Vice President at AVANT, noted "By carefully underwriting and disclosing the risks associated with the transaction at the outset, along with identifying strong mitigating factors to those risks, AVANT was able to provide an accurate and transparent picture of the deal to our capital source. This transparency allowed the bank to concentrate on crafting a deal structure required to mitigate the already identified risks, as opposed to the more common (and very destructive) 'hide the ball' deal-making methodology."
"In this deal, the bank and the borrowers are both winners," says Adam Luysterborghs, Managing Principal at AVANT. "Although fraught with uncertainty and risk, we are thrilled to be active multifamily and commercial mortgage bankers in this marketplace because we are building loyalty with our capital partners and borrowers. This is one of a number of closings we completed this summer."
Avant Capital Partners is a lender and correspondent originating mortgages for several institutional investors and investment banks. The company provides commercial mortgages for stabilized and in-transition investment properties nationwide. They offer permanent financing solutions nationwide for stabilized assets and bridge or interim loans for properties that are in-transition. Their capital partners rely upon Avant Capital to take each transaction from preliminary underwriting through to closing to provide a seamless execution and positive experience for borrowers.
Source: Avant Capital Partners