Capstone Closes $15M Refi on 362-Unit Louisville Community

The owners of the property decided to refinance the existing debt plus the significant renovations it made to the property.

by Laura Calugar

Asley Helm, VP at Capstone Capital, assisted the transaction
Asley Helm, VP at Capstone Capital, assisted the transaction

Louisville, Ky.Capstone Capital recently announced the cash-out refinancing of a 362-unit community in Louisville. The owners purchased the property for $5.5 million in May 2014, when the asset was in bad shape. About 90 units were completely boarded up and another 45 units needed substantial repairs. With occupancy at around just 65 percent, the owners completed significant renovations and repairs, including new HVAC units, new flooring and security cameras around the entire property.

The owners decided to refinance the $9.6 million existing debt plus renovations and cash out trapped equity. Capstone Capital shopped the asset among several lenders and the borrowers chose a CMBS lender that closed on the property with a loan amount of $15 million. This gave $8 million of cash-out dollars back to the owners.

“We were pleased to deliver excellent loan terms and significant cash-out dollars to this repeat client”, said Ashley Helm, vice president at Capstone Capital, in a prepared statement.

Since 2007, Capstone Capital has closed more than 130 commercial loans for more than $1.3 billion in loan volume. With offices in Nashville, Tenn.; Tampa, Fla.; and Fayetteville, N.C., Capstone Capital closes loans throughout the Southeast and Mid-Atlantic.

Other recent transactions for Capstone include a $42 million refinancing for an off-campus student housing community in Greenville, N.C.

Image courtesy of Capstone Capital