25 Year Amortization
Washington, DC Hotel
Challenge: Available capital for hospitality assets has undergone several shifts in product pricing and structure in recent years. Projects with less than predictable income and without national flags have become more challenging to recapitalize or obtain acquisition loans. This client sought to refinance a 100-room limited-service property located in a top 50 MSA and required a low-leveraged 10-year fixed loans with interest only and a sub 4 rate. Due to market and other factors the borrowers did not wish to use CMBS financing.
Solution: Harborview delivered a loan from a regional, relationship based bank that exceeded client expectations in both term, amortization, leverage and rate. We accomplished this by focusing and directing the bank to the guarantor’s strength and future opportunities for the relationship.
UNITS100,000 Square Feet
3 years of interest-only
Texas Mixed-Use Facility
Challenge: This client secured an attractive empty shell building in the heart of the vibrant Dallas urban arts neighborhood. Their vision included preservation of original architectural detail of this historic 105 year-old building, along with a complete modernization of the interior for retail and office use. The borrower was seeking a relationship with a lender that would share their vision and provide attractive construction financing.
Solution: Harborview secured a substantial construction loan with an attractive rate and favorable carve out guarantees. The borrower was able to close quickly and at a leverage point that met their needs and is currently midway through completion of this project. The project will be recorded on the National Registry with the National Park Service as an historic building, and will be LEEDs certified.
LOCATIONNew York, NY
UNITS13,250 Square Feet
Challenge: Our client came to us requesting a refinance loan on a New York City office building that just completed construction. The newly renovated building had no historical occupancy or financials.
Solution: Harborview delivered customized $8,200,000 refinance loan to our client. We used our long time relationship with a local bank who provided the financing despite having no occupancy or financials.
LOCATIONNew Jersey, Pennsylvania, Texas and West Virginia
UNITS960,500 Square Feet
Portfolio of Four Large Anchored Shopping Centers
Challenge: A non-US borrower came to us requesting refinance loans for four retail shopping centers. Our client had no existing loans and wished to place leverage on the projects in order to recapitalize equity, and utilize trapped cash for expansions and distributions. While active centers with stable gross revenues these malls were located in rural markets and had non-standard leases with anchor tenants.
Solution: Harborview carefully analyzed the transaction and developed a customized and comprehensive financing solution for the four centers. After discussion with the client, it was determined that a life insurance company CREF product would be appropriate to meet all goals. We then carefully shopped the package to a select group of insurance companies active in these markets and this asset class. Harborview ultimately achieved four permanent non-recourse loans with lengthy amortization and a successful cash-out. This paved the way for the client’s realization of their expansion plans and investor distributions while providing for stable structuring on these assets.
Challenge: Although this project was a stabilized, performing transaction it was extremely de-levered and the client was seeking an $8,000,000 cash-out at non-recourse terms. In addition, Harborview was tasked to negotiate the new financing during the period of interest rate hikes that occurred in early 2016.
Solution: Harborview suggested a CMBS product to achieve the borrower’s primary goals of non-recourse, long amortization and a near doubling of current leverage. Our CMBS relationship delivered a stellar rate and the full requested cash-out with a swift closing. This client is now a happy repeat customer and has taken advantage of the plethora of financing options Harborview offers, including Freddie Mac, regional bank and Conduit executions.
Bridge to HUD
Multifamily Garden Style Apartments
Challenge: This client’s largest deal to date, needed the financial structure to include a lending proposal equal to 100% of the purchase price in order to accommodate a heavy capital expenditures budget. Adding to the challenge, immediately prior to the acquisition a fire destroyed an entire one-unit section rendering it un-rentable.
Solution: Harborview delivered a 98% of purchase price (75% of cost) loan after careful preparation, negotiation and discussion with local and regional banks. This was accomplished through careful packaging and presentation of the client’s pro-forma plan, substantial regional multifamily experience and appeal as a bank customer, and appropriate modeling of future cash flow and takeout. Harborview ultimately delivered a loan with competitive Libor+300 rate, aggressive recourse burn-off and 24 months of interest only payments, while allowing a second position loan of $600,000.This satisfied client has done several repeat bank and Freddie Mac loans with Harborview and we are currently taking this loan to permanent financing with HUD.
2 years of interest-only
New Construction Skilled Nursing Facility
Challenge: Our client developed a unique business model and created a boutique luxury skilled nursing product to service affluent short-term acute stay rehab patients. Due to the nature of the business model, the proposed construction costs per bed were the highest ever in California, with no local comps to support the transaction. In addition, the client’s financial structuring and capitalization plan required a high leverage loan.
Solution: Harborview Capital worked to carefully frame and package the borrower’s experience, reputation and business plan to a group of banks, and led a syndication to achieve the desired outcome. Consultation services were provided to both the banks and the borrower to work with the appraiser to ensure the business plan was appropriately conveyed to achieve the necessary support. Our client obtained a construction loan at close to 80% leverage and is now hard at work building a new standard for skilled nursing care.
LOCATIONMichigan and Texas
Loan Amount: $19,168,000
Pair of Independent Living Facilities
Challenge: Our client had successfully acquired a pair of independent living facilities approximately one year before being introduced to Harborview. Due to timing and other constraints, the client closed with a high rate bridge lender and then began implementing their revenue enhancements, occupancy increases, and expense controls. The client ultimately desired a permanent exit via either a Fannie or Freddie agency takeout, however, has not yet succeeded in meeting the 90% occupancy for a 90-day threshold. Harborview was asked to refinance the current high rate bridge loan onto a short term balance sheet product to reduce debt service during the latter part of the transitional period.
Solution: Harborview Capital arranged non-recourse financing from a national balance sheet agency lender. The borrower achieved their goals of re-bridging at a low-interest rate with interest only, due to Harborview’s careful underwriting and presentation support of the recent financials. The borrower also achieved a $4,000,000 cash-out, with all proceeds non-recourse. Harborview and our satisfied client are now recapitalized and poised to quickly achieve stabilization and a permanent takeout.
LOCATIONTennessee and Kentucky
19 Facility Senior Living Portfolio
Challenge: Our sophisticated and experienced client maintains a large portfolio of stabilized assisted and independent living assets in the mid-south. The borrower was looking for an attractive capitalization structure including a short amortization period. Harborview was asked to enter a competitive field of financial institutions and to produce a below market rate. The client was already looking at a Libor 2 minus pricing.
Solution: Harborview delivered a Libor+155 basis point rate on the refinance with a fee cap and additional proceeds for expansion. This was accomplished through careful negotiation of top-tier lending institutions who were eager to earn this client’s book of business.