|
Remington Financial Group secured $11,500,000 non-recourse permanent mortgage fixed rate financing, which included the center's existing higher rate mortgage, for a retail center in Sunrise, Florida. The property, built in 1987, is a non-grocery anchored strip center that housed local tenants including an eight screen independent movie theater. The most attractive feature of the financing was a 5.11 percent interest rate that was fixed for 10 years and amortized over 30 years.
With rising interest rates, many experienced real estate owners capitalized on fixed rate pricing when the 10 year treasury was less than five percent. Property owners with mortgages that were originally secured in the 1997 - 1998 time, when fixed rates were higher than eight percent, realized the most benefit when they refinanced these existing mortgages. Even with defeasance, owners recaptured this expense from lower payment savings in approximately 18 months as their payments were often 30-40 percent less.
The Florida retail center is a prime example of just such a transaction. One of Florida's most prominent real estate families engaged RFG on an exclusive basis to secure new financing for the center and also to coordinate the defeasance of the existing mortgage. RFG advised the client to fix the rate at application which paid off since the Treasury was over 4.25 percent at the time of closing. RFG's lender provided an 80 day rate lock without cost to the borrower, and RFG provided defeasance services without cost to the client as well. These are both examples of how extremely low transactional costs can be passed onto the borrower as a result of working with RFG.
<< Back To Case Studies |
