A couple of our Top Investor clients had recenty been selling off some of their smaller buidlings with the goal of investing into large and better quality assets to add to their portfolio. Since the real estate market values had been thru the roof their investment strategy included broadening of their typical investment market areas. This strategic plan has worked out well.
The asset itself was stupendous and fully occupied, but was located in a very tertiary market area, and although our client owned many apartments buildings they had not owned anything in the Riverside market area and they had plans of managing the building themselves. To top it off on this transaction the investor needed as long term Interest only as possible.
We met with the current onsite maintenance man and he was very familiar with the property and had real good feedback on the tenant base and the property performance. Our clients ended up recruiting him to their property management team and made him the onsite manager, which resulted in a smooth transition . The location of the property ruled out many lenders, but then the request for interst only also further added challenges. Nonetheless, we secured Freddie Mac SBL financing with a 5 year interest only for the client. They were happy and since then we have moved on to close other deals together.