Friday, May 8, 2015

NBS Financial Arranges $19.4M for Apartment Portfolio

Westlakes Apartments
NBS Financial Services’ Principal and Director of Seattle Production Mike Wood and Associate Finance Officer Austin Johnson have arranged a combined $19,418,000 in financing for a multifamily portfolio totaling 291 units. NBS Financial represented both the borrower and lender. Funding was provided by Fannie Mae through NBS Financial’s correspondent relationship with Walker Dunlop. 

The portfolio consisted of two, older Class-B properties; Westlakes Apartments, a 181-unit complex in Olympia, WA, and Poplar Lanes Apartments, a 110-unit complex in Lynnwood, WA.

Poplar Lanes Apartments
Though successful, the transaction was not without its share of obstacles. With zero debt on either property, the borrower requested max leverage. Lenders are typically conservative about full cash-out loans, especially for older buildings, which may be assessed as riskier. Yet, NBS Financial was able to overcome these challenges and secure a 75% loan to value at attractive terms.

“After an exhaustive search of the market, we identified the most competitive lender and the borrower locked in a sub 4% interest rate. If the Borrower were to go out to the market today, the interest rate would be approximately 40 basis points higher,” noted Mike Wood.

Wood and Johnson structured a 12-year term and 30-year amortization.

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