Multifamily Portfolio refinance

Hey monkeys!!

A little background: we have a portfolio (3000+ units) of multifamily properties across the east coast, from top to bottom. Primarily class b-/c+ assets, all in class a/a- locations. These properties were bought in the past year or so at extremely tight cap rates. They are performing very well (NOI is up anywhere from 15%-80%+). However, while we have rate caps  at 6+, and we can cover our mortgages, that is still more than we would like to pay. 

Does anyone know of a loan product that requires a 1-1.15 dscr (on io), fixed rate, and  a sub 5% rate(last month we closed on 4.75 fixed bridge), with a stepdown prepayment fee? We are looking for somewhere between $100mm-$350mm with such a structure.

Thank y'all,

Comments (14)

Nov 22, 2022 - 10:52am
Bigbodybugatti, what's your opinion? Comment below:

With the 10-year at 3.8%, I do not see anybody being able to secure sub 5% rates in the near future. All of the debt quotes I've gotten in the past couple of months have been +5.75% with leverage capped in the 60s Thinking you could find this sort of debt package in our current environment is just wishful thinking. DM me when you need to sell 

  • VP in RE - Comm
Nov 22, 2022 - 11:12am

We closed last month at 4.75% for a single property. For a portfolio, somewhere out there is a vehicle for what we need 😉.

And no chance we are selling!!! It is a beautiful portfolio, just not going to cash flow for a few  months to a year.

Nov 25, 2022 - 12:31pm
CRESF, what's your opinion? Comment below:

No chance. I'm sorry, but for a portfolio of this size you need a sizable lending institution and I haven't seen a single one that is quoting in the sub-5%'s since November (even sub-6% is getting hard to find). Also haven't seen anyone sizing on IO that tight, either, so proceeds might be a challenge. How much longer are your rate caps for? 

  • 1
  • VP in RE - Comm
Nov 22, 2022 - 11:43am

If you know if a product that can meet us on the dscr, we are flexible on the rate!

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Nov 22, 2022 - 11:52am
Urban Mogul, what's your opinion? Comment below:

Depending on affordability, GSEs may be able to offer a product as such. Especially for the loan size, they may be incentivized to be flexible. PM if you want to discuss more. 

  • VP in RE - Comm
Nov 22, 2022 - 11:57am

Thank you!

DM sent 

Nov 25, 2022 - 2:19pm
stivkbuilt, what's your opinion? Comment below:

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