Multi-Family Portfolio Acquisition in Dallas, Texas
07 April, 2022 · 2 min read
Today’s deal spotlight centers on the acquisition of a multi-family portfolio in Dallas, Texas. Being that Terrydale had financed the clients properties in the past, the seller came to Terrydale asking for guidance on valuation and financing options. To get started, we did a full comprehensive underwriting and market analysis to give him a breakdown of what the value of each property is.
These properties were conveniently located to the Terrydale office and fit within the parameters of some of our previous investments, leading to a competitive offer that was accepted by the client. Due to the vintage builds (starting at 1936) of the properties, the multi-family portfolio required a lot of due diligence due to the very poor condition of the properties.
To facilitate the deal expeditiously, we decided to assemble a group of our clients to close this transaction, including an asset manager, an equity and tax professional, as well as property manager with 40 years of experience.
What We Were Up Against
During the close process, we discovered many unforeseen repairs that needed to be addressed. Additionally, we were coordinating around COVID challenges, historical district questions, major plumbing and foundation concerns with limited crawl space access and very limited financial data, some of which was handwritten.
What Our Team Helped Turn Around
Terrydale Capital put its network to use, having our friends and client’s step in and bring their expertise to get over the construction hurdles as well as bring the remaining equity to the table. We also negotiated with the seller to advise them of the challenges we uncovered and came to an agreeable seller concession. Combined with the use of an updated pro forma and CapEx with the new repairs included, and previously used surveyors and third-party contractors to get a quick turnaround on necessary reports, we closed with the following terms:
- A $12,600,000 Loan Acquisition
- 6.50% Fixed Interest Rate
- 36-Month Loan Term
- Interest-Only with 80% LTC (heavy rehab of 40% of total cost)
For the best chance of closing a real estate financing deal on your terms, look no further than Terrydale Capital. Our team consistently goes above and beyond to secure the best possible refinancing terms for our clients amidst lending restrictions, market volatility, and a lack of experience. Whatever you need, we close the gap.
Want access to real estate opportunities you won’t find anywhere else? Click Below
Want to receive Weekly Market Updates, Deal Spotlights, Off-Market Opportunities, and Referral Rewards such as a Peloton?
More Deals and Updates
DEAL SPOTLIGHT $8.8M Land Loan Refinance | Salado, Texas11 August, 2022 · 4 min readToday's Deal Spotlight centers around the closing of a land refinance loan that's valued at $8.82 million. Located in Salado, Texas, the land deal was finalized with a WSJ prime + 1%...
DEAL SPOTLIGHT Multi-Family Refinance| Saint Joseph, Missouri4 August 2022 · 3 min readToday’s Deal Spotlight centers on the $2.9 million refinance of a multi-family commercial asset in Saint Joseph, Missouri. This 76-unit property was owned by multiple parties with...
Market Updates Commercial Real Estate Market Update | July 2022July 27th, 2022 · 4 min readTerrydale Capital is actively providing capital solutions to our clients. We are in constant discussions with our capital market resources and are also identifying new...
DEAL SPOTLIGHT $1,676,250 Industrial Acquisition| Tyler, Texas20 July, 2022 · 3 min readToday’s Deal Spotlight takes us to Tyler, Texas, and centers on the $1.67 million acquisition of an industrial real estate asset. Reluctant to settle for a rate in the low 5.00s...
LEARN SBA 7(a) Loans Refinancing to SBA 504July 21st , 2022 · 6 min readFor small business owners, the recent rule change that allows SBA 7(a) loans to be refinanced with an SBA 504 at up to 85% of the loan value is cause for celebration. While both are solid options...
DEAL SPOTLIGHT $3,171,000 Retail Acquisition| Dallas, Texas13 July, 2022 · 3 min readToday’s Deal Spotlight takes us to Dallas, Texas, and centers on the $3.17 million acquisition of retail assets. It was also important for our client to have enough capital to cover...
LEARN When to Arrange a 1031 ExchangeJuly 7th , 2022 · 4 min readIf you currently own an investment property but are considering selling it in the near future to purchase another property, you might want to take advantage of a 1031 tax-deferred exchange. By using a...
Market Updates Commercial Real Estate Market Update | June 2022June 29th, 2022 · 4 min readTerrydale Capital is actively providing capital solutions to our clients. We are in constant discussions with our capital market resources and are also identifying new resources...
DEAL SPOTLIGHT 3-in-1 Multi-Family Acquisition | Garland, Texas22 June, 2022 · 3 min readToday’s Deal Spotlight centers on the acquisition of a commercial multifamily asset in Garland, Texas. From the outset, it was clear that factors surrounding liquidity, expiration...