ValueXpress has arranged a $3,550,000 Fannie Mae CMBS conduit loan for the purchase of a portfolio of six small apartment buildings located in Norfolk, Virginia. The loan represented 80% of the $4,437,500 purchase price. The properties are known as Castaways, Fisherman’s, Havana Beach, Blue Marlin, Neptune’s Walk and Tradewinds. The properties are named and decorated in a “beach” theme reflecting their location near Norfolk Beach.
“We have a long history with this transaction,” commented Michael Sneden, Executive Vice President at ValueXpress. “We secured a Fannie Mae commitment in 2013 to refinance the portfolio, but the owner elected not to close and rather pursued a sale. We supported the decision and turned our sights toward providing financing for a buyer.”
In 2015, the property was placed under contract and ValueXpress secured a Fannie Mae commitment to finance 80% of the purchase price. However, the buyer was unable to raise the purchase equity and cancelled the contract at the expiration of the due diligence period.
An alternative buyer was secured in 2017 and ValueXpress obtained a third Fannie Mae commitment to finance the purchase. The closing was delayed because it took four months to remove a lien on the property. The lien holder refused to release the lien until ordered by a judge to do so.
“This transaction was one of the longest to close in my career, but we stood with the seller during the entire five-year period to make sure the result was as expected, and we earned a new client in the buyer through the process,” said Sneden.