ValueXpress provided a $1,800,000 loan secured by a 54-unit garden apartment complex located in Hampton, VA. The property was purchased in 2005 by the sponsor, a local investor who owns multiple apartment complexes in the Hampton, VA market. The purpose of the loan was to refinance a maturing Fannie Mae loan. The 65% LTV, 10-year fixed-rate loan amortizes based on a 30-year schedule and was locked at an interest rate in the mid-4% area.
“The sponsor was able to extract significant cash-out from this transaction for use in another real estate project,” commented Michael D. Sneden, Executive Vice President of ValueXpress. “We worked through military concentration issues with Fannie Mae to be able to deliver the cash proceeds that were applied for.”
“Based on our success with this transaction, we are moving to complete Fannie Mae financings on two other larger projects owned by the sponsor that will result in significant interest savings as the other projects have relatively high interest rates,” Sneden said.