Refinancing Options: Beyond Freddie Mac SBL

Problem: A high-net-worth client who is a typical Freddie Mac Small Balance Loan (SBL) borrower was looking for refinancing options. While Freddie SBL was the expected path, the client wanted to explore alternatives that could deliver lower cost of capital while still preserving non-recourse protections, which were a priority. Additionally, the client placed significant weight on having a seamless, efficient closing process that wouldn’t distract from managing their broader investments.

Solution: Essex Capital Markets canvassed the market and identified a broad array of competitive financing options. After thorough analysis, we strategically placed the deal with a local banking partner we know excels at smooth, dependable executions. This approach allowed us to replicate the key benefits of an SBL structure while reducing all-in costs and ensuring the client’s emphasis on ease of closing was met. Our knowledge of which lenders can reliably execute without unnecessary hurdles proved essential in meeting the client’s objectives.

Outcome: The client secured non-recourse, permanent financing at a lower cost than what agency execution would have provided, with a streamlined closing process that aligned with their timeline and expectations. This transaction demonstrates how Essex Capital Markets can leverage both agency and bank channels to create tailored solutions for clients who want the best of both worlds, competitive economics and lender dependability.