Wednesday, August 1, 2012

Essex Financial Group closes $7.8 Million loan

Mike Jeffries and Cooper Williams of Essex Financial Group recently closed a $7.8 million refinancing for the 204-unit Golden Nuggets Apartments at South Broadway and West Belleview Avenue in Englewood.

Morton Associates, a limited partnership, has owned the building for more than 40 years and had an existing loan with Fannie Mae.

Although the property has experienced significant occupancy and rental rate growth in recent months, agency-underwriting rules prevented the owners from achieving the necessary loan proceeds to retire the existing loan.

Essex structured the new financing through a regional bank that relied on current economic conditions to support the new loan.

The new five-year loan equates to $38,235 per unit and is amortized over 30 years. It improved Morton’s monthly cash flow and provides the ability to fund additional improvements.

Sanford K. Metzel, manager and operator of the property through SKM Management Co., has renovated 40 percent of the units and anticipates having 90 percent of them renovated within the next 18 months.

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