Note Purchase Financing Case Study 1
Performing Loan Purchase
The following loan summary represents Belgravia Capital's financing of a multi-family property in Sacramento, California. The current owner of the property is purchasing the note from their lender at a sizable discount. By doing so, the owner was able to lower their cost base and increase the return on the real estate investment.
| Property Type: | Apartment |
Par Loan Amount: | $25,000,000 |
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| Location: | Sacramento, CA |
Coupon: | 6.49% |
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| Units: | 319 |
Maturity Date: | 12/1/2014 |
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| Appraised Value: | $37,700,000 |
Current DSCR: | 1.82x |
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| Note Purchase Price: | $18,750,000 |
Borrower NOI: | $2,955,148 |
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| Price of Par Value: | 75.00% |
Exit Cap Rate | 9.00% |
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| LTV on Appraised Value: | 49.73% |
Borrower Value: | $32,834,978 |
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| Months to Maturity: | 38 |
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| Hold to Maturity | ||||
| Unlevered IRR: | 12.74% |
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| Levered IRR: | 18.15% |
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| Loan to Own | ||||
| Disposition Price: | $14,406,347 |
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| Unlevered IRR: | 19.85% |
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| Levered IRR: | 31.97% |
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