A refinance loan is a credit facility extended to a property owner to retire the existing debt, recapture property appreciation, and provide liquidity to the owners.
This facility will enable the purchaser to leverage his / her equity and maximize the return on investment, by keeping the out-of-pocket proceeds to a minimum.
We arrange construction loans for almost all types of projects and can cover the hard, soft, and financing costs. Loan-to-cost ratios are market and industry specific.
We also arrange long-term, fixed-rate financing with terms ranging from five years to as long as 40 years, all on varying amortization schedules.
For deals that require repositioning, floating-rate debt has proven to be an invaluable tool in maximizing a property’s potential. They are typically on an interest-only basis, generally bear lower interest rates, and usually have little to no prepayment penalty.
These loans, secured by the partnership interest, are invaluable as they can provide an additional tranche of financing without disrupting the integrity of the first mortgage, or in cases where subordinate financing is disallowed. Typically, an intercreditor agreement will be required.
Similar to a mezzanine loan, preferred equity allows for an additional tranche of financing while respecting the senior debt. In most cases, it will not require an intercreditor agreement with the senior lender.
