Closing the Gap: Higher Proceeds Achieved for $850K Multifamily Loan

Problem: The buyer sought leverage in the low 70s to make the multifamily housing acquisition work. Most lenders, however, capped proceeds well below this level, creating a financing gap between the client’s target and what the market was offering.

Solution: Essex Capital Markets stepped in and ran a focused lender search to identify the right multifamily housing financing option. The ECM team engaged a local bank and encouraged them to take a more holistic view of the deal—considering not only the property’s cash flow but also the sponsor’s personal income. This broader underwriting approach allowed the lender to size proceeds more effectively and deliver the leverage the client required.

Outcome: The buyer secured an $850,000 multifamily housing financing package at just over 70 percent loan-to-purchase. Despite the added complexity, the transaction closed smoothly and on schedule, providing the client with the structure they needed while satisfying all parties involved.