Challenge

A long-term Matthews™ Client and Los Angeles multifamily investor was looking to finance a 16 unit apartment property. This was the borrower’s first time lending through an agency, as opposed to banks. The Matthews™ Capital Markets representatives were given the challenge to walk the borrower through some learning curves and provide expertise to this client’s first agency financing experience.

Strategy

The Matthews™ Capital Markets division hunted for the best rate as the borrower was looking for a long-term fixed rate, meeting the Freddie Mac Small Balance Loans program. The lender favored the property’s cash flow, low loan-to-value, and full collections, allowing the team to secure an aggressive rate. While the due diligence period was abnormal for the borrower, Matthews™ Capital Markets utilized their expertise to negotiate with the lender to delegate a portion of the process.

Results

Thanks to the diligent effort on behalf of Matthews™ Capital Markets, the borrower was confident in exploring other lending options, which ultimately resulted in securing one of the best rates in Los Angeles for 2020. Knowing that the borrower was hesitant about the due diligence process and preferred long-term fixed rates, the Matthews™ representatives found the perfect loan offered by Freddie Mac and walked the client through every document. Almost a full half percentage less than what the bank offered, the loan amount came out to 3.10% over 30 years, 10-year fixed term with a 10-year adjustable and fully non-recourse with standard carve-outs. Matthews™ Capital Markets is currently working on multiple 10 – 25 unit deals in Los Angeles with similar pricing, and their expertise in the market ensures clients get the best pricing even with the hundreds of financing options out there.