New York, NY, July 22, 2011 --(PR.com)-- The proceeds of this $7.2 million loan were used by the borrower for the repayment of a private bridge loan, originally utilized for the purchase and renovation of the complex.
According to John Dragone, the senior banker and team leader on this deal at Terrace Capital, “MSC Investment is a seasoned development company with access to a wide range of financial institutions throughout the country.
“ When their local banker’s stopped funding permanent loans on properties with limited operating history, due to the stagnant economic climate and substantial vacancy rates in the Atlanta MSA, MSC turned to Terrace because of its ability to navigate the non-recourse, credit markets and provide innovative solutions for low cost, permanent financing during the worst credit crunch since the Great Depression.”
The 5-year non-recourse loan, with a 5.21% interest rate fixed for 5 years and amortized over 30 years, closed within 7 days of investment committee approval.
Multiple challenges existed in structuring the deal, which included a limited, stabilized occupancy history of 3 months, a market vacancy rate of approximately 17% and a limited equity position of 10% in the project.
Terrace is now currently exploring providing equity for MSC to acquire additional multifamily complexes between 100 & 400 units in the Atlanta MSA, via the Landmark Opportunity Fund, real estate hedge fund managed by Terrace Capital.
Terrace Capital is a direct lender and asset manager of private funds which provide debt or equity capital for commercial real estate transactions. The Firm is a leader in providing conventional mortgages and bridge loans solutions for wide range of real estate transactions.
For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.
Contact:
John Dragone, Managing Director, Terrace Capital, 212-671-1031
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