Article
Equicap gets creative with Brooklyn deal
NEW YORK, NY - January 19, 2011- Daniel Hilpert, managing director of Mortgage Equicap, announced that the company has arranged a $13,500,000 5-year fixed-rate mortgage for a portfolio of apartment buildings in Brooklyn, NY.
According to Hilpert, the owner wanted to consolidate several loans into one blanket mortgage at the most competitive rate and at the same time have the ability to dram additional proceeds (cash-out) on an as-needed basis.
Mortgage Equicap arranged a 4.50% fixed-rate, non-recourse mortgage with a 30-year amortization schedule.
In order to give the borrower the requested flexibility, Mortgage Equicap negotiated a 5-year A note to refinance the existing debt and a 5-year B note structured as an interest-only line of credit.
The B note (line of credit can be drawn at the borrower's discretion and paid out at any time without prepayment penalty.
"This is by far one of our most creative solutions. We listened to our client's needs and negotiation the loan facility accordingly", said Hilpert.
The borrower said, "The new facility will not only give us the flexibility to draw additional funds over time but also significantly improve our cash flow due to the lower rate and the interest-only component of the B note."
