BOSTON- Valencia Realty Capital, a provider of flexible, cost-efficient debt capital for commercial real estate investors and developers, announced that it has arranged a $3.1 million loan on a 9-unit residential portfolio across three buildings in Boston’s trendy South End next to the Northeastern University campus.
“The borrower was very pleased, as we were able to surpass expectations on cash out proceeds, which our client will be using towards additional property acquisitions,” said Stephen Smeke, Managing Director of Boston-based Valencia Realty Capital. “The deal demanded flexible underwriting in order to hit the debt service coverage ratio required by the debt capital markets.”
The classic brownstone buildings located on Hammond Street consist of a unit mix with two- and three-bedroom apartments.
The loan terms included a fixed-rate period of 5 years with a 30-year amortization. A flexible prepayment penalty was provided as non-applicable in the event of a building sale.
Earlier, in another creative deal with a different borrower, Valencia arranged $2 million in cash-out refinancing for a portfolio of 17 residential units in six buildings located in five different towns – Revere, Middleton, South End, East Boston and Everett in Massachusetts.