LFB Ventures was recently engaged by a client seeking to refinance debt on an existing commercial asset and acquire a new asset in an effort to diversify his portfolio.
LFB Ventures reached out to its extensive network of commercial real estate lenders but based on borrower’s desire to minimize cash outlay in acquiring new commercial property, secondary location and concerns regarding retail during Covid-19, initial interest was limited. LFB ultimately identified a single lender willing to offer 65% LTV cash-out refinance on existing asset and 70% LTV financing for acquisition of new commercial property. LFB worked diligently with the borrower and lender to navigate and overcome complex title, insurance, and valuation issues.
Both loans were written with a 5-year term, amortized over 25 years, with small holdback reserve with funds to be released within first 12 months of loan based on yield maintenance of 8.0%.