$7,400,000 Cash-Out Refinance Permanent financing for a 40-unit apartment building located in Philadelphia, PA

Real Property Capital Inc. (RPC) recently arranged a $7,400,000 cash-out refinance of a 40-unit apartment building located in the Rittenhouse Square neighborhood of Philadelphia, PA.?The loan features a 10-year term with an interest rate of 4.25% fixed with a 30-year amortization and was underwritten at 70% loan-to-value. While the existing loan did not mature until the 4th?quarter, our long-time client elected to grab a low rate today given future uncertainty and the tight debt service coverage ratio constraints that low cap rate assets are facing in this rising rate environment. Upward rate volatility is the new normal, so it’s more important than ever to react quickly and to access the full range of available capital sources to find the most advantageous lender of the moment. We originally signed this deal up with a different type of lender at a rate that would have equated to 3.8% before rates increased.?Ultimately rates climbed?+1.5% in about 30 days, but thanks to a quick pivot to a different lender, we were able to achieve a great outcome for our client once again.

?Real Property Capital, Inc. is a full-service mortgage banking firm with offices in Conshohocken, PA and Naples, FL. We have an impressive track record of arranging a diverse array of customized debt and equity financing for income as well as “for-sale” commercial real estate investments. Due to our broad and unique network of capital sources and our unparalleled customer focus, we consistently deliver exceptional results that exceed our clients’ expectations.?

Duncan Pearson

Senior Associate

[email protected]