NEW YORK, June 28, 2013 /PRNewswire-iReach/ -- The proceeds of this $13.50MM, 75% loan-to-value mortgage was used by the borrower, Hughes Equities, LLC, for the repayment of existing floating rate debt, attempting to head off a rise in long term interest rates. The non recourse, mortgage had a 10 year fixed term and a 25 year amortization schedule, with no personal guarantees.
Western Michigan Apartments, a 711 unit portfolio, comprised of 6 residential complexes, is located in Kentwood, Wyoming & Kalamazoo, Michigan. An underwriter from Terrace commented that the properties are in excellent locations in the two largest MSAs in West Michigan; Grand Rapids and Kalamazoo which are both experiencing economic growth in health care, life sciences, and higher education. The Grand Rapids Metropolitan Area, which is anchored by the cities of Grand Rapids and Wyoming, is the fastest growing region in Michigan and the second-fastest-growing region in the upper Midwest. Located in southwest Michigan, the Kalamazoo-Portage MSA is comprised of Kalamazoo and Van Buren counties. Kalamazoo County possesses one of the most diversified manufacturing environments in the state of Michigan, with more than 500 firms representing virtually every aspect of the manufacturing field.
According to a senior underwriter at Terrace Capital, "Lending in the state of Michigan has been challenging over the last several years, with the decline of the auto industry in the region, which has gone on for the last 30 years. Despite the economic issues, Terrace Capital is willing to take the time to find credit worthy borrowers in the state and structure deals in a competitive fashion. A number of loans currently in the pipeline at Terrace Capital, located in Michigan, Ohio, Indiana and Florida, have proposed senior debt of 75% and mezzanine financing to 85% of market value. Fannie Mae and Freddie Mac have generally limited these pre-review states to a LTV of 65% and we are often able to achieve LTVs of 75-85%", including conventional construction loans.
Terrace Capital focuses on non-recourse senior & subordinate debt and preferred equity with investments starting at $5MM on income producing retail, office, industrial, multifamily, self-storage and hospitality properties located throughout the continental United States.
The Firm is a leader in providing permanent mortgages and equity for wide range of real estate transactions.
For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.
Media Contact: Media Relations, Terrace Capital, Inc, 212-671-1044, firstname.lastname@example.org
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SOURCE Terrace Capital, Inc.