Amarillo Multifamily Acquisition: Creative Financing

Amarillo, TX

Deal Overview

Inner Circle Capital successfully arranged the financing for the acquisition of 2 multifamily properties in Amarillo, TX with a purchase price of $1,030,000 (13 units and 5 units respectively). The seller carried ~30% of the purchase price with liens on the buyer’s portfolio, which allowed the buyer to close with no money down.

The loan was structured with an interest rate of 12.50%, a 100% combined loan-to-value (CLTV). The loan is interest only for 10-years with a 30-year amortization period after the interest only period. This structure allows the sponsor to stabilize the property without a time pressure to refinance out of the high-rate debt. The loan is purely asset based with no sponsor level underwriting or approval.

Capital Advisors: BJ Simpson and Jaideep Chadha

Transaction Details

Loan Amount

$710,000

Loan to Value

70% LTV (Senior); 100% CLTV

Term

30 Years

Prepayment

5% for 1 Year

Rate

12.50%

Recourse

Full Recourse