Background

The owner acquired this owner-managed 18-unit apartment complex built in the 1960’s with significant deferred maintenance and in need of a face-lift.  The owner invested his personal equity to finance renovations and upgrades.  The owner looked to Rockhall to provide a non-recourse, high-leverage loan that would lock in a low interest rate for the long-haul and allow him to recover renovation costs.

The Challenge

Refinance acquisition debt and renovation costs for a small owner-managed project so that the owner could obtain an attractive return on equity.

Outcome

Rockhall utilized FHA insured financing to pay off all existing debt plus substantial cash-out.  The refinance reduced the note rate to 3.90% and locked in a 35-year fixed rate ensuring the long-term economic viability of the project.