BWE, a national commercial and multifamily mortgage banking company, announced today that it has secured three loans totaling $69,130,000 to provide financing for three multifamily properties in Indiana and Alabama.
Joe Solomos, Senior Vice President in BWE’s Denver office, and Grant Sternberg, Assistant Vice President in BWE’s Louisville office, originated the loans for a longtime client whose goal was to acquire two new assets. BWE secured two cash-out refinance loans against the borrower’s existing Indiana properties, generating the equity needed for the acquisitions without requiring additional cash out of pocket. Solomos and Sternberg worked with two different lenders to tailor each loan to the borrower’s strategy for that asset, while also negotiating minimal prepayment penalties that will give the borrower flexibility to capitalize on favorable market conditions down the road. BWE also arranged one of the acquisition loans, drawing on its correspondent relationship with a life insurance company lender to achieve 75% loan-to-value, the maximum leverage available.
Due to the multi-faceted nature of the deal, timing was also critical, and all three loans closed within 33 days of each other to meet the purchase contract deadlines. The BWE team coordinated the flow of funds and due diligence across various parties throughout the transaction, leaning on their established lender relationships to keep closings on schedule and on terms. The borrower was therefore able to preserve its reputation in the marketplace as a reliable, well-capitalized buyer.
“At BWE, the depth of our capital platform and strength of our relationships allow us to partner with clients to solve puzzles like this one,” said Solomos. “Our goal is always to help our clients execute their business plan with the best financing available. Even with this deal’s many moving parts, our client counted on us to handle the critical elements that fueled a great opportunity for portfolio growth, and we’re grateful for their trust.”
The three loans are:
• $21,380,000 — Life insurance company acquisition financing on a multifamily property in southern Alabama. Non-recourse, 5-year term, 30-year amortization, prepayment flexibility.
• $33,750,000 — Life insurance company cash-out refinance generating acquisition equity and providing permanent financing on a multifamily property in southern Indiana. Non-recourse, 10-year term, 5-year interest only period, followed by 30-year amortization.
• $14,000,000 — Credit union cash-out refinance generating acquisition equity and providing bridge financing on a multifamily property in central Indiana. 5-year term, 30-year amortization, full prepayment flexibility.
