Louisville, KY – Sweetwater Capital is excited to announce the recent cash-out refinance of a 362-unit multifamily community in Louisville, KY on September 23, 2016. The owners purchased the property in May 2014 for $5,500,000. At the time of purchase, the property was in rough shape, with approximately 90 units that were completely boarded up. Another 45 units were in need of substantial repairs and occupancy was hovering around 65%. Renovations were substantial and included repairs such as new HVAC units, new flooring and security cameras covering the whole property.
The owners wished to refinance existing debt plus renovations and cash out trapped equity. Because the owners acquired the property below value and made so many significant renovations in a year’s time, finding area comparable properties that supported the new value of this property was challenging. Existing debt was $9,600,000. Sweetwater Capital shopped the asset amongst several lenders and the borrowers ended up choosing one of their trusted CMBS lenders. This lender closed on the property with a loan amount of $15,000,000 – this put $8,000,000 of cash-out dollars back in the owners’ pockets.
“We were pleased to deliver excellent loan terms and significant cash-out dollars to this repeat client”, said Ashley Helm, Vice President at Sweetwater Capital. She represented the borrowers throughout the transaction.