44-Unit Multi-Family Acquisition | Arlington, Texas

Terrydale Capital

Jan 18, 2021 3 Min read

blog image Deal Spotlight

Today we’re turning the spotlight on an apartment building in Arlington, Texas. The 44-unit multi-family property proved to be one of our most challenging assignments yet, owing to a combination of the asset’s attributes and uncertain market conditions. The Terrydale Capital Team is proud to have risen to the challenge and delivered for our clients.

What We Were Up Against

Despite their experience as a multi-family investor group, this was our Client’s first purchase in the Texas market. As a result, several Lenders expressed uncertainties due to the lack of in-state presence. The Seller’s poor management and absentee ownership position had also left the property un-stabilized at the time of contract and in need of repairs, with a 55% occupancy rate.

The closing timeline given per the Sales Contract was short, and with less than a week to close, we found out that a section of the property sat in a Flood Zone. Additional flood insurance would be required.

What Our Team Helped Turn Around

By successfully negotiating an extension with the Sales Broker for formal loan approval and deal close by the contract deadline, we facilitated more thorough negotiations. Consequently, there was better communication of the Borrower’s vision and plans for a Texas portfolio expansion to the Lender. Picking up a flood insurance policy on the way, the Terrydale Capital team gave the Borrower the foundation needed to take over leasing and achieve an 80% occupancy before close. Right on schedule, we secured an advancing term bridge loan for acquisition and renovation on the following terms:

  • $2,842,500 Loan Amount
  • 79% LTC
  • 4.25% Fixed Rate for 5 Years
  • 2-Year IO followed by 3 Years of Amortized Loan
  • Limited PP for only 2 Years of 5-Year Term

The team at Terrydale Capital consistently goes above and beyond to secure the best possible refinancing terms for our clients. Are you dealing with issues related to market volatility during COVID-19? Worried about high fees and missing out on better options? We have ways to help. Give us a call and see what we can do for you.

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