An Alabama-based real estate investment firm was seeking to refinance an industrial property it had recently leased up. While the project received interest and terms from several institutions, the winning lender was able to provide aggressive terms and move into underwriting rapidly.
Sponsors often value speed and certainty of execution just as much as, if not more than, the lowest interest rate or the highest loan proceeds. While conventional financing is not always as rapid as private credit or hard money, some banks are able to move faster than others while still providing highly competitive terms.
Deal snapshot
| Metric | Terms |
|---|---|
| Property type | Industrial |
| Deal type | Refinance |
| Market | Goldsboro, North Carolina |
| Loan amount | $2M |
| Rate | 6.25% fixed |
| Term | 5 years |
| Amortization | 25 years |
| LTV | 75% |
| Lender fee | 0.50% |
| Time to close | ~60 days |
| Winning lender type | Bank |
How Gumption secured the best terms
The sponsor's strength and the strong cashflow of the property made this project attractive to a variety of lenders, both local to the market and out-of-market. While the sponsor's incumbent lender was also interested in refinancing the property, it was only willing to provide a significantly lower loan amount and a shorter term.
Ultimately, the winning lender was a regional bank able to get comfortable with out-of-state sponsors thanks to its presence across the Southeast. The final loan provided roughly $1.25M of net cash-out proceeds to the sponsors, recapitalizing them for a strategy well executed.
Financing an industrial property? Match your deal with the best lenders from Gumption's network of ~900 banks, credit unions, and private lenders.