Cornerstone Realty Consultants has arranged $17 million in financing for the refinance of a 157 unit apartment portfolio in Boston's Allston and Brighton neighborhoods.
The portfolio, comprised of several buildings located at 1298-1302 Commonwealth Ave., 8 Griggs St., and 61-77 Brighton Ave., is owned and operated by The Mount Vernon Co.
The borrower, whose current mortgages are not open for prepayment until next year, chose to pursue a Forward Commitment program which allowed them to lock in their appraisal value, interest rate, and loan proceeds now, with the actual loan closing taking place in 2010. Through the Forward Commitment program, The Mount Vernon Co. was able to lock in a 10 year fixed rate of 5.99% with a 30 year amortization.
Bruce Percelay of The Mount Vernon Co. said, "With the uncertainty in today's credit markets I was looking for a product that would allow me to take advantage of current capitalization and interest rates while still providing the flexibility for me to minimize any prepayment penalties. Cornerstone delivered exactly that product."
Paul Natalizio of Cornerstone Realty expressed the importance of the Forward Commitment program and said, "This is a product we think can bring tremendous value to apartment owners by eliminating a lot of the uncertainty that continues to exist in the multi-family financing marketplace. With interest rates where they are today, it's a great time for owners to analyze their existing debt and see where they can take advantage of this type of program much like The Mount Vernon Company did."
Cornerstone specializes in structuring and sourcing innovative financing for all property types. In addition, Cornerstone provides 1031 exchange consulting and acquisition services.
To learn more about Cornerstone Realty Consultants please call us at 781.322.7300 or email us at [email protected].