GREENVILLE, NC - Capstone Capital is thrilled to announce the recent refinancing of The Boundary at West End, a “best in class” four-story, mixed used development that provides 550 beds of student housing to students attending East Carolina University along with 11,500 square feet of retail space on the first floor. This beautiful project is located downtown directly next to campus where parking is very limited. Therefore, this developer graciously provided 453 parking spaces in a massive parking deck neatly wrapped by the residential and retail for excellent curbside appeal. The developer finished construction on this property in August 2015 and achieved 100% occupancy for the residential space and has Amazon and Smoothie King for retail tenants. This is the fifth time the developer has hired Capstone Capital to arrange to take out the construction loan with a fixed rate, non-recourse loan.
The expectations for loan terms were set very high - seeking a loan amount of at least $40 million – in order to take out $34.4 million of existing debt and all the developer equity. Hitting desired loan proceeds was proving to be an extremely challenging feat. Most lenders came back short offering only $37MM in loan proceeds with conservative underwriting criteria due to the inherent risk of a mixed use project with a high student concentration. The Capstone Capital team worked relentlessly with Fannie Mae to achieve aggressive terms with fourteen waivers to standard underwriting to increase the loan amount. The funding of this loan revealed extraordinary results: a loan amount of $42MM with a 4.21% interest rate fixed for 10 years with 2 years of interest only followed by a 30 year amortization. The developer took $7.4MM cash at closing to fund 2 new developments. “The borrowers are not only accomplished and well respected developers… they are close friends. We feel very fortunate for the opportunity to work on their behalf!” states Jackson Howard, President of Capstone Capital. He represented the borrower throughout the completion of this financing.
About Capstone Capital: Since 2007, we have closed over 120 commercial loans for over $1 billion in loan volume. With offices in Nashville, Tennessee and Fayetteville, North Carolina, we close loans throughout the Southeast. 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.