$1.2MM Multifamily Acquisition | Kansas City, MO
Terrydale Capital
Mar 18, 2024 3 Min read
While some things age like a fine wine, lenders sometimes don’t view it that way towards commercial assets. Today’s deal spotlight centers on the acquisition of a Multifamily asset in Kansas City where our team utilized our prowess in negotiation, our broad industry connections and worked closely with the borrower in order to close successfully despite the age of the property. .
Challenges We Faced
The borrower came to us seeking financing on their multifamily asset located in a secondary market, which can be a minor speed bump depending on lenders. However, the larger challenge was the age of some of the buildings within the portfolio as some had ages exceeding 100 years. An additional challenge was posed due to the insurance in place. The insurance did not meet the lender’s requirements and loomed as a potential “deal killer.”
How We Met Those Challenges
Our team went to work immediately for the client. We were able to negotiate max proceeds on a 30-year amortization in a secondary market. We leveraged our broad insurance relationships in order to acquire the sufficient insurance coverage that met the lenders requirements. Through those relationships, we were able to acquire the insurance at a price that didn’t kill the deal. Ultimately, we were able to secure the following terms:
- $1,263,500 Acquisition
- 8.62% fixed interest rate
- 5-year term
- 30-Year Amortization
- 75% LTV
In Conclusion
When the client approached us with a demanding scenario, they entrusted us with the assurance that our team could rise to the occasion. Our combined proficiency, coupled with extensive industry networks and a tailored approach to each transaction, establishes us as the ideal partner for any commercial investment endeavor. If you have a problem on a tight timetable and need the right partner, contact us at Terrydale Capital today.
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Headquartered in Dallas, Texas, Terrydale Capital is a leader in commercial real estate financing. We have close relationships with the nation’s top banks, lenders & family offices allowing us to provide the most competitive financing solutions in the market.
