Commercial Mortgage Loan Closings
SEAHURST VILLAGE APARTMENTS
Investment Property
Property that is bought for the purpose of real estate investment property, which is to generate income. Not owner-occupied, although a duplex could be occupied by an owner in one unit. Usually tenant-occupied.
STEELHEAD CAPITAL PROVIDES $18 MILLION LOAN FOR SEAHURST VILLAGE APARTMENTS IN BURIEN, WA.
San Francisco, CA
Opportunity: The borrower was able to purchase this asset at less than 50% of replacement cost.
Challenges: Timing was critical after the borrower failed to arrange bond financing, and the seller was going to “walk” with $500k in earnest money if the borrower didn’t close the deal within 30 days. Additionally, the property’s performance had rapidly declined providing very “thin” debt coverage.
Solution: Steelhead Capital arranged an 80% acquisition and rehab loan in the amount of $18mm. We were also successful in structuring an “earn-out” provision that allowed for the release of an additional $1.5mm in loan proceeds as soon as the cash flow improved. We were also able to negotiate a Seller second loan, interest free for 3 years. This structure will ultimately be refinanced through permanent Fannie Mae financing once the borrower has executed their rehab and stabilized cash flow.
Steelhead Capital is a premier provider of creative financing solutions for commercial real estate loans. Steelhead Capital brings an extensive network of loan sources, structured finance experience with a focus on commercial real estate acquisitions, and a clear commitment to personalized customer service to investment property financing in any of the 50 states. Steelhead Capital's corporate offices are located in San Francisco, CA.
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