Transaction Description
Commercial Office Property in Seattle, WA.
LoanBase successfully arranged a $4,100,000 10-year fixed loan to refinance an office building in Seattle. The Borrower was seeking an efficient, transparent solution with reduced transaction costs. The Borrower, a veteran real-estate investor, requested long term, non-recourse financing.
Although the sponsor wanted a low fixed rate, he was seeking a banking relationship in order to refinance various other projects in his portfolio as well. The complex is situated in a prominent area of Downtown Seattle, next to a strong retail corridor. The building was built in 1984 and consists of more than 21,500 square feet of modern office space.
Strategy:
After completing the quick survey detailing his asset, LoanBase was able to connect
the Borrower with 20 lenders, each providing live quotes that matched the Borrower’s criteria. The Borrower was then able to strategize with lenders of their choice in order to attain quotes that fit their needs.
There were a few hurdles that LoanBase and the Borrower had to overcome in order to secure financing for the asset, including a 70% occupancy rate due to COVID-19. The Borrower was seeking a lender that would be comfortable moving
forward with the loan and was willing to create a partnership with the Borrower for their future portfolio.
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Transaction Details
Loan Amount: $4,100,000
Rate: 3.51%
Term: 10 Years
Amortization: 30 years
LTV: 70%
DCR: 1.25x
Prepayment: 3, 2, 1
Recourse: Non-Recourse
Lender Origination Fee: None
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Successful Results:
Despite the hurdles, LoanBase was able to source a lender who understood the asset, market despite the COVID-19 vacancy challenges, and believed in the Sponsors business plan. LoanBase was able to assist the Borrower through every step of the way in order to achieve their goals. The Borrower was able to attain non-recourse, long-term 10-year financing, fixed rate of 3.51%, 70% LTV, with a 30-year amortization. The transaction was closed within 45 days of loan application and left both lender and borrower with a desirable result and a long-lasting partnership on future investments.
