LFB was engaged by a repeat client to complete the refinance and cash-out of two multifamily buildings in San Diego, CA. The refinance was completed in order to solve for pending estate taxes. Between the two buildings, there are a total of 82 units. The buildings were built in 1962 and 1963. As with previous financings for this client, the challenge is the ownership structure and large number of beneficiaries who have approval on all matters. LFB navigated these challenges with lender and the attorneys, and was able to secure and close the refinance in 36 days start to finish.
The final terms of the refinance was a $7,000,000 loan from Fannie Mae, with a 2.76% interest rate, 10-year term and 30-year amortization. For purposes of estate planning and cash flow, LFB structured one building full term interest only, and the other fully amortizing. The loan was non-recourse.