ValueXpress closed a $6.5-million CMBS conduit first-mortgage loan on a 19-building, 2-story apartment complex constructed in 1972 and renovated in 2010 located in Jacksonville, FL. The transaction was a cash-out refinance of an existing loan that has been utilized to rehabilitate the property. The loan was structured with a 10-year fixed-rate term amortized based on a 25-year schedule.
The property is located within the heart of the city of Jacksonville, Duval County, FL, approximately a half mile from I-95, which allows for access to downtown Jacksonville, as well as Georgia and the southern parts of Florida. There is a substantial amount of residential development in the immediate area.
“The transaction was challenging in that the property recently completed a substantial rehabilitation and neither the income nor the expenses were stabilized,” commented Jim Brett, the ValueXpress underwriter on the transaction. “Many conduit lenders passed on the deal because of this issue; however, we have an excellent ongoing relationship with an investment bank that stepped up and hit the proceeds target for the borrower,” said Brett.
The transaction closed in 32 days. “The sponsor is a long-time client of ValueXpress and it was imperative that the transaction close without a hitch to maintain this very important relationship,” said Michael D. Sneden, Executive Vice President of ValueXpress. “I am thankful our investment banking partner performed so well on yet-another transaction.”