Commercial Mortgage Loan Closings
ISLAND CLUB APARTMENTS
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan to the market value of the property. For instance, if the market value of the property is $200,000, and the bank will loan a maximum of 80% LTV, the largest possible mortgage on that property will be 0.8 x $200,000 = $160,000. This ratio is key, because most banks will not make loans for real estate investments if the LTV is greater than 80%. This is one very unique quality for the smaller balance commercial loans offered through Steelhead Capital, where you can now receive commercial loans in excess of 90% LTV.
STEELHEAD CAPITAL PROVIDES $13.16 MILLION COMMERCIAL MORTGAGE LOAN FOR THE ISLAND CLUB APARTMENTS IN LAS VEGAS, NV.
San Francisco, CA - January 10, 2002
Opportunity: The borrower was able to purchase a well-run Class C/B asset in Las Vegas below market. The property had not been exposed to the open market, so the borrower needed to work quickly to close the transaction.
Challenge: The terrorist attack of 9/11 hit just prior to this deal going to final loan committee. Steelhead Capital was originating this loan for a large Fannie Mae DUS lender, and was told at the last hour that this particular DUS lender was no longer able to lend in the Las Vegas market under the terms listed on the application. Las Vegas was and still is on a national “watch list”. This made it very difficult to convince the lender that 80% LTV still made sense for the market area.
Solution: Steelhead Capital worked closely with the borrower, seller and new DUS lender to “fast-track” this loan request in a time of grim economic uncertainty. The property’s occupancy did, in fact, decline after the 9/11 fall-out, but then rebounded back to its original level. The success of this transaction took the collective effort of all parties involved to demonstrate the property’s stable position with in the marketplace, as well as verify the Vegas market recovery. 80% LTV in Vegas is not an easy task in the current economic climate.
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 investors financing properties in any of the 50 states. Steelhead Capital's corporate offices are located in San Francisco, CA.
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