OLD CITY APARTMENTS

Details

Loan Type:Permanent
Loan: $3,200,000

Real Property Capital Inc. (RPC) recently closed a $3,200,000 loan on a three property, 20-unit multi-family portfolio located in the Old City section of Philadelphia. The non-recourse mortgage was written as a ten-year loan with a 15-year amortization and a fixed interest rate of 4.00%. The loan was underwritten at 60% loan-to-value and included approximately $1,000,000 in “cash out” proceeds to the sponsor.

RPC was able to overcome numerous obstacles in order to complete the transaction. The deal was restricted as a partner buyout to ameliorate personal credit issues surrounding one of the partners. Further, the existing lender had initiated foreclosure proceedings on the subject properties due to the partnership failing to attend to and submit required paperwork under their existing mortgage. In addition to being willing to sit down with the client and spend countless hours reconstructing the properties’ books and records virtually from scratch RPC led a tactful negotiation with the existing lender and achieved a timely closing to avoid further action against the client and to protect their collateral. RPC overcame all of these obstacles while still securing extremely favorable loan terms on behalf of the client.

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