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Case Study

Condos.

Beplace helps an owner refinance a short-term bridge loan.

The Challenge

Refinance.

A local property owner had acquired a series of condominiums using short-term bridge financing in order to complete a time-sensitive transaction. The condominiums were located in a safe neighborhood of a major metropolitan area within blocks of strip malls and shopping centers that included big brand names. The condominium units were operated as rentals, which provided the owner with some cash flow and continued depreciation. The owner tasked Beplace to replace the existing financing prior to the expiration of the loan term.

The Solution

Finance.

Beplace informed the owner that condominiums typically qualify for tailored types of financing options. And the unique structure of the condominiums limited the options for replacement financing. Beplace suggested that the owner engage a specific global brokerage firm to source a replacement bridge lender. The owner agreed, and Beplace helped the owner contract the firm.

Beplace proceeded to work with the owner to prepare, complete, and close the transaction. We used curated lender checklists to collect and organize due diligence document packages that the brokerage firm used in submissions to prospective lenders. We coordinated with the brokerage firm for status updates, and with follow-ups to due diligence submissions and reviews of third-party reports. Beplace reviewed lender term sheets with the owner, and reviewed draft and redlined lender documents with the owner and the owner's legal team.

The Result

Bridge Financing.

A lender presented an acceptable offer for bridge financing that would replace the existing financing. The proposed terms, including the interest rate, were more favorable than the existing terms. The timeline to close was originally scheduled to be expedited but third-party reports delayed the closing until after the expiration of the loan term. Beplace communicated the delays to the existing lender and was able to obtain an understanding that the closing was underway without committing to an actual closing date. Negotiations with the new lender continued and were concluded within the same month. The owner was able to use our services to streamline a process that resulted in the closing of the refinanced loan and the satisfaction of the original loan.

* Beplace includes agents, directors, employees, managers, owners, or other stakeholders of Beplace whether individually or through Beplace.

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