Commercial Mortgage Loan Closings
CARDINAL SQUARE
Replacement Cost
Actual cost to replace the object destroyed, as opposed to the estimated current value. For instance, 5-year old buidling may have an estimated current value of $400,000, but it may cost $600,000 to replace it.
STEELHEAD PROVIDES $6.14 MILLION LOAN FOR CARDINAL SQUARE/OAKVILLE MANOR IN BEAUMONT, TX.
San Francisco, CA
Opportunity: The borrower had the opportunity to purchase both properties for $4,625,000 - well below replacement cost given the assets’ underperformance within the Beaumont market.
Challenges: Obtain acquisition rehab financing for a Class-C asset. Allow flexibility for sale and/or refinance to cash-out equity.
Solution: Finance 80% of all-in acquisition and rehab costs on an interest-only, short-term basis. Upon completion of rehab and stabilization of rents to market level, the borrower was able to cash out 144% of their original cash equity with permanent fixed rate debt.
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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