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| Kipling Village Apartments, Wheat Ridge, CO |
LOS ANGELES, CA – Commercial real estate investment banking
firm George Smith Partners has successfully arranged $12.2 million in financing
for its client, Kipling Village, LLC., for the cash-out refinance of Kipling
Village Apartments, a 308-unit apartment complex located in Wheat Ridge,
Colorado, according to George Smith Partners’ Vice President Steve Stein
and Senior Vice President Marc Schillinger.
“Kipling Village tasked us with securing the maximum
cash-out refinance for its property, Kipling Village Apartments, to allow the
company to take advantage of other investment opportunities in Colorado, Nevada
and California markets,” explained Stein.
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| Marc Schillinger |
“The client’s existing lender
relationships were not interested in financing properties located in tertiary
markets, so our team drew upon our existing connections in order to identify a
lender who would be willing to fund the refinance.”
According to Stein, the refinance for Kipling Village
Apartments was a full-leverage loan request on a 40-year-old building, which
resulted in increased scrutiny by potential lenders regarding the monthly
reserve requirements for ongoing repairs.
In addition, many lenders required the completion of a costly list of
immediate property repairs prior to financing the loan.
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| Stephen Stein |
“This property presented a number of significant challenges
in order to achieve financing," Stein said..
"One
major challenge we encountered was that the property was collecting rents for
96 percent of the community’s 308 units, while seven percent of these were
non-conforming units.
“Standard protocol for lenders when
underwriting a loan is to exclude the income for non-conforming units, while
still counting the expenses associated with these units against the total Net
Operating Income for the property.
" By
utilizing these standards, the property’s reportable NOI and loan proceeds were
substantially lowered, making the property much less attractive to potential
lenders.”
For a complete copy of the company’s news release, please
contact:
Corynne Randel/ Judith Brower
Brower, Miller & Cole
(949) 955-7940
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