Strategic Execution for a Sponsor’s First Multifamily Acquisition

Problem: This was the sponsor’s first multifamily acquisition, approaching stabilization after value-add improvements. Their construction loan was maturing right as the property was nearing stabilization, creating significant timing pressure. The sponsor also required non-recourse financing despite this being their first deal.

Solution: We engaged early to structure the financing path and make sure the sponsor was well-positioned. By exploring all viable options and understanding the sponsor’s priorities beyond pure economics, we identified a lender offering a low-cost, dependable, and seamless app-to-close process. Our approach demonstrated value not just in terms of rates and leverage, but in presenting the sponsor as bankable and setting them up for long-term success.

Outcome: Closed a 5-year fixed-rate loan on a 30-year amortization schedule, non-recourse, at 67.51% LTV, priced at 215 bps over the 5-Year UST. The execution retired the construction debt on time, preserved non-recourse protections, and provided stable financing for the sponsor’s first multifamily deal.