Fast Execution Wins the Day on Choice Refinance Deal in San Francisco Bay

Multifamily Wire

Multifamily Facts

San Francisco Bay, Calif.

Lender: PNC Real Estate
Loan Type: Choice Refinance
Loan Amount: $344,013,000
LTV: 65%
DSCR: 1.30x
Loan Term: 10
Amortization: 30

The San Francisco Bay area is one of the strongest multifamily markets in the country, with a Q2 2014 vacancy rate of 3.0% and rent gains that have increased over the last year by 1.5%. When DUS® Lender PNC Real Estate came to us with an opportunity to refinance a Bay-area portfolio consisting of 13 non-crossed loans held by Fannie Mae, the Fannie Mae Deal Team leveraged our new Soft Quote process combined with newly enhanced features of our cost-effective Choice Refinance product line to respond quickly with a winning bid.

This fast response allowed the Borrower ample time to compare competing quotes and assess the merits of funding yield maintenance on the existing debt structure. The terms we proposed allowed the sponsor, a long-term holder, to lock-in today’s low interest rates for the next 10 years. The loans were structured to be interest-only throughout the term.

In the end, Fannie Mae's ability to provide a fast, cost-efficient financing vehicle that featured non-amortizing, long-term, fixed-rate debt, proved to be the winning combination for success. Find out how you can benefit from this level of service by contacting your Fannie Mae deal team today.

 

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