SFG provided a cash-out refinance on this 25 unit apartment building located in Kenmore, WA. Kenmore is a popular bedroom community north of Seattle. This property meets its market very well with a unit mix of:
- 13 – 1 bedrooms
- 11 – 2 bedrooms
- 1 large townhouse style unit
The rents are relatively affordable and slightly below market which has translated to historically high occupancy levels, currently at 100%. Some modest deferred maintenance exists but nothing major. SFG vetted the condition of the property with an infra-red moisture scan of the siding and a roof report. Our borrower is an experienced real estate investor who has owned the property for over 20 years. An opportunity came up to buy out a partner, at a discount, on another investment property if the close could happen by month-end. So, tapping into the equity here to execute the buy-out was the simple and quick solution. The borrower will refinance with a traditional commercial loan in 2017.
We want to give a special thanks to Steve Fischer of Westlake Associates in Seattle and Todd Henderson of CBRE Valuation Services for their express service in helping us establish value in just a few short days.