Regency Capital Partners

Silicon Valley Apartment Portfolio


Silicon Valley Apartment Portfolio

Summary

Regency Capital Partners (“RCP”) arranged the refinancing of six Class-B apartment complexes, consisting of 271-units, located throughout the Silicon Valley. The Borrower was facing a credit challenge given the fact that they had given several properties back to their lenders during the 2009/2010 recession. Though many lenders can overlook these issues, the severity and magnitude of the foreclosures had tainted the Borrower as “unbankable”, including with the borrower’s existing lender. RCP crafted a highly-customized proposed loan structure and went to market to obtain non-recourse financing. After approaching several lenders, RCP was able to convince one Fannie Mae lender to offer 10-year, fixed rate, non-recourse financing on the portfolio. In addition to securing several credit waivers to address the borrower’s recent history, RCP was able to get Fannie Mae to provide a waiver for earthquake insurance, allowing the Borrower to avoid costly seismic insurance. The financing was locked at approximately 4.10%, lowering the Borrower’s annual debt service by nearly 200 bps and allowing them to retire the existing recourse debt and focus the property’s operations.


Transaction Details

LOAN AMOUNT $22,350,000
FINANCING TYPE Permanent
LENDER TYPE Agency Lender
PROPERTY TYPE Multifamily
PROPERTY ADDRESS
Map
Various
Silicon Valley, CA
PROPERTY DESCRIPTION The portfolio consists of six Class-B apartment complexes, consisting of 271-units, located throughout the Silicon Valley.