Updated almost 6 years ago on . Most recent reply
Need Lender for Multifamily 79 Unit at 84% occupancy
Hello, I am looking for lender referrals who can help me with better terms on this type of deal. I have a 79 unit apartment deal in Oklahoma, built 2004. Its well maintained but poorly managed and not marketed very well so the occupancy is low at 83%. I've been told I need to be at 90% physical occ and 85% econ. vacancy to get agency financing with rates in the 4's but this one doesn't qualify under those parameters. I do not want a bridge loan with the higher rates as it will kill my cash flow, also I want something long term 7-10 years and prefer a 30 year amort. Any help or options out there?
thank you
Most Popular Reply
@Sara S Jung - it really comes down to DSCR. If the asset debt-services with the existing 85% occupancy, then you're looking at 30-year AM rates in the 6's, low 7's. Definitely not Agency.
However, if you use an I/O bridge loan, you can make whatever improvements you need to, increase the occupancy to 90%+, maybe increase rents....and then, you can refi into Agency debt.