Delray Beach, FL, Sep 4, 2020: QuickLiquidity, a direct lender for commercial real estate, has announced the closing of a $825,000 second mortgage on a 200-unit apartment community located in Atlanta, GA.
The property is 93% leased and is made up primarily of desirable 2 and 3-bedroom floorplans perfect for long term renters and families. It is jam packed with amenities on site, beautifully maintained, as well as having washer & dryer connections in the units.
The property value is estimated to be over $11 million with a first mortgage of only $4.6 million. While the borrower plans on either refinancing or selling the property over the next year, they needed immediate liquidity to buy out one of their existing limited partners who was willing to sell at a discount.
If the borrower were to refinance their first mortgage with a new lender, not only could it take months to close, but the closing costs alone would be significant compared to the relatively small amount of cash the borrower needed to pull out.
QuickLiquidity offered a cost-efficient solution by providing the borrower with a second mortgage on the property. This saved the borrower a ton of money in refinance fees and allowed them to pull cash out of their property in only a few weeks, without an appraisal.
“We help commercial real estate investors across the country who have a significant amount of equity in their property but few ways to quickly monetize it”, says A. Yoni Miller, Principal of QuickLiquidity. "We creatively tailor our subordinated debt to let them unlock their trapped equity without disturbing their existing first mortgage."
Have questions regarding subordinated debt such as a second mortgage, mezzanine financing, or preferred equity? Give us a call right now at 561-221-0881.
