$13,000,000 Non-Recourse Loan Closed for the cash-out refinance of an industrial portfolio located in Edgewater Park, New Jersey

Real Property Capital Inc. (RPC) recently closed $13,000,000 in non-recourse permanent financing for the cash-out refinance of a 375,000 square foot multibuilding industrial complex in Edgewater Park New Jersey. The 10-year loan was underwritten at 50% loan-to-value with full-term interest only at a rate of 6.97% (based off the 10-year SOFR swap rate plus 285 basis points).

The Sponsor acquired the property all cash at very favorable terms in 2022 and quickly completed a multitude of capital and tenant improvements and was able to sign several new leases allowing for the completion of the cash-out refinance, well above the basis, in about seven months. Prior to acquisition of the real estate and the company, the entire complex was owner-occupied and was operated as a break-even company. With no historical cash flow, a conventional bank would not make a loan on the property, however RPC was able to source a cash out refinance, far beyond the basis, non-recourse and interest only, before the property was stabilized and all of the tenants had even taken occupancy. Our superior underwriting and structuring skills shined through in this transaction as evidenced by the outcome, which was unimaginable to many observers.

Real Property Capital, Inc. is a full-service mortgage banking firm with offices in Conshohocken, PA and Naples, FL. We have an impressive track record of arranging a diverse array of customized debt and equity financing for income as well as “for-sale” commercial real estate investments. Due to our broad and unique network of capital sources and our unparalleled customer focus, we consistently deliver exceptional results that exceed our clients’ expectations. #commercialmortgagebroker #nonrecoursefinancing #commercialrealestate #Industrialrealestate