Balance Sheet Loan, Self-Storage
Rate-locked 12 Months in Advance!
Closed
1,088 Units - San Antonio, TX
$4,950,000 Loan Amount
10 Year Fixed-Rate Term, Sub-4% Rate
25 Year AM,
Non-Recourse
Total of $8.5k in 3rd Party & Legal Costs
No Escrow for Replacement Reserves
No Special Covenants
12-Month Forward Rate-Lock at Application
The subject property had a loan maturing in October 2016, but the borrower did not want to wait until this fall to find out what his rate would be. As such, we arranged a 12-month forward rate-lock with a lender back in October 2015! Six months after the initial rate-lock, the borrower decided he needed another $1m in cash-out proceeds, so we submitted a request to the lender. After a week of review, the lender granted the additional request. Just weeks before closing, the borrower requested an additional $500k and it was granted by the bank as well! The bank's loan documents do not include any special covenants or technical defaults and simply require timely payment of the loan.
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