$42,854,000
Perm Loan
139-Unit Multi-Family
Redmond, WA
Highland successfully arranged permanent financing for the acquisition of The Bond Apartments in Redmond, WA. The sponsorship sought maximum loan proceeds while simultaneously acquiring a brand-new asset at an attractive basis during its lease-up. COVID-19 slowed the leasing velocity and suppressed rental collections prior to closing which negatively impacted the loan sizing of conventional permanent lenders.
Highland identified a lender that provided a split tranche, A/B note funding structure, locking in the interest rate spread day one, and which will fund a B-note within 6-months after the close-of-escrow based on T-1 rent collections at that time. This allows the sponsorship to get the property operating in-line with pro forma expectations compared to temporary COVID-related declines during lease-up. The non-recourse permanent loan will be fixed for 10 years priced in the low 3%’s featuring 4-years of interest only followed by a 30-year amortization.