DEAL OF THE DAY: Green Park Financial Provides a $12.5M Loan to 156-Unit Rental Community
- Jun 11, 2008
By Anuradha Kher, Online News EditorMiddletown, Del.–Green Park Financial recently provided a $12.5 million refinance loan to Middletown Apartments, a 156-unit Class A apartment community, located in Middletown, Del.Green Park structured the loan with a 10-year term and 30-year amortization. The loan was underwritten to an 80 percent loan-to-cost with a 1.20x debt-service coverage ratio using a base-max loan structure with a letter of credit as additional collateral. The new Fannie Mae Delegated Underwriting and Servicing (DUS) guide allows for borrowers to close loans on properties in lease-up after one month of stabilized collections as opposed to the previous requirement of 90 days at 90 percent physical occupancy. The lender was able to lock rate early when the property was approximately 83 percent occupied in order to take full advantage of low interest rates and closed prior to full stabilization with a letter of credit for the difference between the current loan amount and the stabilized loan amount. Middletown Apartments was built in 2007 and features a mix of units located in 12 buildings containing 12 units each. The property was 90 percent leased at closing.