Q10 KDH Vice President Larry Peters and Senior Associate Adam Unger provided a cash-out refinance for a multifamily property in a secondary market of Texas. The borrower was looking to continue to hold their asset for at least 15 years and they received a 15-year term, full interest only and returned cash to the partners.
Larry Peters stated, “The borrower received an approximate discount of 33 basis points in their interest rate for agreeing to implement water saving devices. That will save $1 million in interest over the life of the loan. Coupled with the interest only component over 15 years and the water saving cost, the borrower reduced their loan payment while putting $3 million in their pocket and still own the asset.”