COMMERCIAL LENDING

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Spearhead Commercial Capital brokered a $35 million acquisition loan for a value-add opportunity in the Tampa Bay MSA. The Borrower is a long-time commercial real estate investor who owns and manages over 8,000 units across the United States. All of the acquisitions are long-term B and C class properties that receive light tenant improvements.   For this purchase, the Borrower was looking for non-recourse financing that avoided agency debt due to current market restrictions too severe for their investment strategy. The Borrower also wanted the lowest rate in the market, 65% LTV, 60-day close, 1.00x DSCR. Spearhead Commercial Capital partnered with a national bank to provide financing through a SWAP fixed-term loan. The loan allowed for a 10 year term with four years of interest-only payments and a fixed rate of 2.95%. The Borrower was also not required to supply the bank with any P&I reserves. Rather they created a covenant to monitor liquidity instead. When the improvements to the building are completed and the rent roll stabilized, the Sponsor's recourse will decrease from a 50% limited guarantee to a non-recourse.    

 "It was an amazing experience for us to work for one of the largest private multifamily investors in the country on this transaction. The subject property will fit nicely within the portfolio that the borrower has built over the last 40 years. We are excited to have added value and creativity to a borrower whose previous lending relationships couldn't match the terms of the structure we negotiated. Spearhead takes great pride in being consultative and focusing on the investor's strategy to bring not only the best loan terms but the right loan terms to match that strategy. Mission accomplished here as we look forward to earning our keep on future projects as client's portfolio continues to grow." - William Foy, Partner

Spearhead Commercial Capital brokered a $28 million refinance loan for a newly stabilized multifamily

opportunity in the Houston, TX MSA. The Borrower is a long-time commercial real estate investor who

owns and manages over 2,500 multifamily units around the Houston MSA. All of the assets in their

portfolio are long-term holds, B and C class multifamily properties that are self-managed.

For this refinance, the Borrower was looking for financing that avoided CMBS debt due to insurance

requirements needed by those lenders in this area. The Borrower also wanted the lowest rate in the

market, 70% LTV, 60-day close, 1.15x DSCR on T3. Spearhead Commercial Capital partnered with a

regional bank to provide financing through a fixed-rate loan that was syndicated with another regional

bank. The loan allowed for a seven-year term with a first-year fixed rate of 2.99%. The Borrower was

also not required to supply the bank with any P&I reserves. Instead, they created a covenant to

monitor liquidity. This transaction was completed in 57 calendar days, and the servicing bank was able

to accept a past appraisal to help expedite the closing and underwriting.

"We're pleased to help one of Texas's largest multifamily investors refinance their flagship asset, a 362-unit

apartment community in the Brompton neighborhood of Houston. We identified this borrower through cold call efforts in early November, and it was discovered that the borrower was not pleased with a national bank loan he had on this property as he felt he was forced into unnecessary insurance requirements. One of our regional bank partners was offering a special rate discount for new relationships brought into the bank by the end of the year, and immediately we went to work on this refinance request; we only had 52 days to

complete this transaction. To meet the timeline for end-of-year funding, our lending partners made some

exceptions to due diligence requirements by allowing waiving new appraisals and working on past results.

The borrower was very excited to have received the lowest rate in the market and that we met the expectations we set forward originally. This was a great way to finish the year for all parties involved!"

- Marcus Davis, Partner