A client had four properties encumbered by a Commercial Mortgage-Backed Securities loan that was maturing. He had plenty of equity in the properties. He wanted to have access, but he wasn’t sure if he should maximize the equity available. He also wanted protection against rising interest rates on his loan.
The Abbot Downing team structured a solution that refinanced the CMBS loan through a term loan with interest rate protection. A line of credit secured by the same commercial real estate properties was also established.
The CMBS loan was refinanced with some cash out to the client. The loan interest rate was fixed The line of credit provided access to equity available as needed for future potential investment opportunities.
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