Commercial Loan News
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
Commercial Real Estate Loans Summary:
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.
A. Sean Aguilar, CCIM with Steelhead Capital, Inc. was responsible for advising and placement of the loan for the Buyer as well as negotiating the full waiver on the TPA's with HUD. Steve Crane, Sr. Sale Associate, of Arroyo & Coates was the referring agent.
Steelhead Capital is a premier provider of creative apartment building loan financing for commercial real estate investors. Steelhead Capital brings an extensive network of lending sources, structured finance experience with a focus on acquisitions, and a clear commitment to personalized customer service to investors financing properties in any of the 50 states. Steelhead Capital's offices are located in San Francisco, CA. Company information can be found at www.steelheadcapital.com.
Contact Information:
Steelhead Capital, Inc
415-397-2980 (phone)
415-397-2981 (fax)