GREENSBORO, NC – Capstone Capital announces the recent cash-out refinancing of Wendover at Meadowood Apartments. This 264-unit property was newly constructed in phases over 2013 and 2014. The owners have a strong background in residential and commercial real estate development and management.
When faced with the decision to sell or keep the asset, the borrowers were attracted to the significant cash-out advantages that were available through Fannie Mae’s refinance terms. Although this property is gorgeous, hitting a loan amount of $20 million was a challenge other Fannie lenders found very difficult.
The borrower succeeded on closing on $20,000,000 with a 4.54% fixed rate for 12 years with Interest Only for the first 2 years followed by a 30 year amortization for the remaining term. To further maximize cash-flow, Fannie Mae waived replacement reserves for the life of the loan, which, in turn, could improve the property’s cash-flow $66,000 per year. This development team was thrilled because they pulled $4,600,000 cash-out above the construction loan.
This huge cash-out allowed them to recycle their equity and invest in more development. “This repeat client agrees with the cash-out and redeploy strategy and we were happy to deliver on their high leverage expectations again!” said Jackson Howard, President of Capstone Capital.
About Capstone Capital: Since 2007, Capstone Capital has closed over 115 commercial loans for over $1 billion in loan volume. With offices in Nashville, Tennessee and Fayetteville, North Carolina, Capstone Capital closes loans throughout the Southeast. The Capstone Capital team states, “We put our best resources in competition to secure the best loan for our clients. Then we go the extra mile, because this business is about more than a great mortgage rate. We’re thorough, we’re involved, and we take the pressure off of our clients. Our packages get prompt attention from lenders because they’re detailed and transparent, ensuring a smooth, no-surprises process for all. It’s the reason 80% of our business is repeat customers. Our team prides itself on being involved, thorough and focused on customer service so as to ensure that the process can be as seamless for the borrower as possible. To learn more please visit www.cscap.us.