Commercial Mortgage Loan Closings
NIMITZ APARTMENTS
Amortization
Loan repayment schedule that shows how much of each monthly installment payments are applied to principle and payment applied to interest. Amortization is the reduction of the principal of a debt in regular, periodic installments over a specified time and at a specified interest rate. Generally, amortization schedules are "front-loaded" heavily towards interest payment in the early years of the loan, then gradually shift more towards paying more towards principle. This front-end weighting towards interest early on ensures that the banks get their money early in the loan period, when it is worth more at net present value.
STEELHEAD CAPITAL PROVIDES $3.5 MILLION LOAN FOR NIMITZ APARTMENTS IN SAN ANTONIO, TX.
San Francisco, CA - August 19, 2003
Steelhead Capital closed a $3.5 million loan in San Antonio, Texas for Nimitz Apartments. The loan is a 30-year, 7.18% fixed rate mortgage, amortization over 30 years. The loan-to-value ratio was 80% with 1.25x debt service coverage. Steelhead Capital arranged the loan through one of its correspondent lending relationships.
The borrower acquired the 1972 130-unit class C garden style apartment complex for $2.47 million in the year 2000 and performed a thorough renovation and repositioning of the asset in 2003. The all-in cost for purchase and renovation was $2.77 million. Steelhead Capital, Inc. refinanced the asset by placing a $3.496 million for a 30-year fully amortized, fixed rate program funded by Fannie Mae. The refinance enabled the borrower to pull $726,000 above their original cost at a 126% ROE.
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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