Commercial Mortgage Loan Closings
EDISON APARTMENTS
Adjustable Rate Mortgage (ARM)
A mortgage loan with a variable rate feature. The rate is usually tied to the prime rate, the best overnight lending rate that banks give each other, or to other specific market indices. There is usually a low initial or "teaser" rate, and these loans are sold to younger buyers who can reasonably expect their salaries to rise. ARM's contain restrictions on when the rate can rise or fall, and by how much (usually not more than 1% per year.)
STEELHEAD CAPITAL PROVIDES $1.35 MILLION LOAN FOR THE EDISON APARTMENTS IN STOCKTON, CA.
San Francisco, CA - November, 2002
Steelhead Capital closed a $1.35 million loan for the Edison Apartments in Stockton, CA through one its correspondent relationships. The loan is a 5-year fixed rate at 6%, converting to an adjustable rate mortgage priced at 3% over the 6-month LIBOR. The loan to value ratio was 71% with debt service coverage of 1.25x.
The class B property built in 1967 and renovated in 1998 is comprised of 44 units. The loan was closed in less than 30 days for an exchange buyer and has prepayment penalties of 5% decreasing to 1% for years 1 through 5 of the loan. Occupancy at close was 97%.
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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