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This is the second time I have worked with these two guys in hopes of building an investment real estate portfolio. I am extremely pleased with their knowledge and understanding of the multifamily industry. I would not hesitate to use them again. I highly recommend them both.
- Beth Pitsch, Dwelling Zone
NAI Wisinski Great Lakes introduced the Buyer to a 48-unit apartment community in Grant, Michigan that the team had sold to a previous client. The Buyer was looking to expand her apartment holdings using the existing equity from a 112-unit apartment community purchased several years earlier from NAI. The challenge was for the Buyer to do so using no additional out-of-pocket capital. An additional challenge was to retain the very favorable loan terms already in place on the 112-unit asset and to acquire the same terms on the acquisition loan on the new property.
The NAI team negotiated the purchase of the 48-unit property working with the Buyer, her attorney, and the lender, to establish individual ownership entities and to segregate the loans and their respective guarantees. The multifamily team negotiated the necessary financing with a local lender.
The Buyer acquired Dwelling Zone Apartments using no out-of-pocket capital. A new bank loan was placed on the subject property, while the equity portion was sourced from a cash-out refinance on the 112-unit property via the same lender. Both properties received a fixed rate for 10 years and a 30-year amortization.
In addition, NAI was able to convince the bank to set up lines of credit for unit upgrades at each property. The loans had limited recourse; both would become totally non-recourse after five years.