This was a cash out refinance loan request for a repeat client. Our client returned to us seeking to cash out some funds for a planned purchase.
It was just over 2 years ago when we last financed this Hotel for the clients and therefore the loan had a prepayment penalty that needed to be negotiated. Equally important the borrowers were anticipating a big increase in the property value.
ALB was able to structure a loan with the current lender whereby the rate dropped dramatically and the lender allowed for full waiver of the prepay but at a 1 point cost. The property value did increase but not as much as the borrower's anticipated but nevertheless, they did well. We were able to get the loan closed and we are working with them on a new hotel purchase.