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  • Writer's picturejameyc

Case Study: Dwelling Zone

Updated: Aug 25, 2020

NAI Wisinski Great Lakes | September 17, 2019 | Closed Date: July 17, 2019


The NAI Wisinski Great Lakes Team 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. They worked with the Buyer, along with her attorney and 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 place 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 become totally non-recourse after five years. The only costs outside of closing that were incurred by the Buyer were legal fees required to set up the new ownership entities.


The NAI Wisinski Great Lakes team of Craig Black and Scott Nurski worked together with me to obtain a new loan on my existing 112-unit apartment community. The equity I pulled out allowed me to acquire a nearby 48-unit property. Not only did NAI negotiate and help me navigate my way through the sale, but they negotiated the necessary loans and loan terms allowing me to purchase my new property without having to spend outside capital.

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.

Angela Cassiday

Honeycutt Holdings, LLC

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