Type of the loan: Bridge Loan – Refinance and Cash Out
The loan provided the necessary funds to refinance and cash out a multifamily building.
Grand Pacific faced several challenges to achieve our client’s goals. The subject properties rent was well below the market price in that area, however due to San Jose Apartment Rent Ordinance rent increase was limited to 5% annually. Additionally due to the short term lease the stability of occupancy was in question.
Despite the downside, Grand Pacific believed in the properties current and future profitability. The property was located in a sought after location with 100% occupancy and being managed by an experienced broker and real estate company. Grand pacific refinanced the loan and provided cash-out to the borrower. With trust in our client’s profitability, Grand Pacific was able to achieve our client’s goal once again.