Commercial Mortgage Loan Closings
ARBORS APARTMENTS
1031 Exchange
IRS rule that allows any property owner – investor or home owner – to avoid capital gains taxes on the transaction by purchasing a property of equal or greater value. Rules vary from year to year, but generally the property has to be identified within 6 months after closing on the old property. This rule also applies to "like-kind" exchanges, and include other property such as boats or jewelry. It does not apply to securities, bonds, or stocks.
STEELHEAD CAPITAL, INC. PROVIDES $1.775MM LOAN FOR THE ARBORS APARTMENTS IN RICHMOND, CA AND NEGOTIATES THE HUD EXCEPTION FOR A FULL WAIVER FOR PAST TRANSFERS OF PHYSICAL ASSETS (TPA).
San Francisco, CA - December 24, 2003
Steelhead Capital, Inc. closed a $1,775,000 fixed rate loan for the acquisition of The Arbors Apartments located in Richmond, CA through one of its correspondent relationships on December 24, 2003. The loan was a 3-year fixed rate at 4.81% amortized over 30-years with an extended term. The loan to value ratio was approximately 70% with a debt service coverage of 1.15x. Steelhead Capital was responsible for negotiating on behalf of the Seller 3 separate waivers of HUD requirements for a Transfer of Physical Asset. HUD typically requires Full TPA's and the Seller was requesting HUD allow a Modified TPA to fulfill HUD's requirement.
The 36-unit class B property was built in 1961 and consists of 23 Section 8 units with a regulatory agreement for low-to-moderate income tenants. The regulatory agreement was modified to allow for new financing with conventional interest rates thereby replacing the existing HUD loan. The buyer was a newly formed TIC comprised of 1031 exchange funds as well as new members. The transaction closed at 98% occupancy.
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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