MFG Capital Group Specializing in Residential Jumbo Loan Workouts, Restructures, and Bridge Loans
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Commercial Case Studies
 
 
Case Study #13: Detroit, MI
 
Property Details
Type of Property: Apartment Building
Year Built: 1929
Class: C
Units: 47
Square Footage: 28,000
Occupancy: 95%
NOI: $137,200
Cap Rate: 14%

Situation
The owner had a total outstanding debt of $1,200,000. The current market value (CMV) on the property was $980,000. The owner received an unexpected electric bill for $80,000 for a faulty meter reading and went into default on the loan.

Objective
Purchase the existing loan at a discount for cash, restructure the owner's debt and provide long-term conventional financing for a take-out while not disturbing the existing tenants.

Solution
Negotiate and purchase the loan for $400,000 after which time, modify the owner's debt from $1,200,000 down to $512,000, realizing a $688,000 principal debt reduction! The owner carries a 12-month bridge loan at 15% interest after which time obtains a refinance loan at 55% LTV for $550,000 at 7.5% interest, 25 year amortization with a 15 year balloon.

 
 
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Case Study #19: El Paso TX
 
Property Details
Type of Property: Shopping Center
Year Built: 1967
Class: C
Units: 11
Square Footage: 15,000
Occupancy: 70%
NOI: $132,000
Cap Rate: 12%

Situation
The owner had a total outstanding debt of $1,650,000. The current market value (CMV) on the property was $1,100,000. Due to a decrease in market rents and lower occupancy, the owner could no longer service the existing debt structure.

Objective
Purchase the existing loan at a discount for cash, restructure the owner's debt and provide long-term conventional financing for a take-out while not disturbing the existing tenants.

Solution
Negotiate and purchase the loan for $643,500 after which time, modify the owner's debt from $1,650,000 down to $715,000, realizing a $935,000 principal debt reduction! The owner carries a 6-month bridge loan at 14% interest after which time obtains a refinance loan at 65% LTV for $715,000 at 6.5% interest, 25 year amortization with a 5 year balloon.

 
 
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Case Study #31: Raleigh, NC
 
Property Details
Type of Property: Office Building
Year Built: 1984
Class: A
Units: 21
Square Footage: 20,000
Occupancy: 58%
NOI: $211,440
Cap Rate: 8%

Situation
The owner had a total outstanding debt of $3,850,000. The current market value (CMV) on the property was $2,643,000. Due to a decrease in market rents and lower occupancy, the owner could no longer service the existing debt structure.

Objective
Purchase the existing loan at a discount for cash, restructure the owner's debt and provide long-term conventional financing for a take-out while not disturbing the existing tenants.

Solution
Negotiate and purchase the loan for $1,665,000 after which time, modify the owner's debt from $3,850,000 down to $1,850,000, realizing a $2,000,000 principal debt reduction! The owner carries a 9-month bridge loan at 15% interest after which time obtains a refinance loan at 70% LTV for $1,850,000 at 7.25% interest, 20 year amortization with a 10-year balloon.

 
 
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Case Study #23: Denver, CO
 
Property Details
Type of Property: Apartment Complex
Year Built: 1990
Class: B
Units: 322
Square Footage: 225,000
Occupancy: 75%
NOI: $650,000
Cap Rate: 10%

Situation
The owner had a total outstanding debt of $9,500,000. The current market value (CMV) on the property was $6,500,000. The balloon came due and the existing lender did not want to renew the loan and offered a discount on the note.

Objective
Purchase the existing loan at a discount for cash, restructure the owner's debt and provide long-term conventional financing for a take-out while not disturbing the existing tenants.

Solution
Negotiate and purchase the loan for $3,900,000 after which time, modify the owner's debt from $9,500,000 down to $4,550,000, realizing a $4,950,000 principal debt reduction! The owner carries a 4-month bridge loan at 13% interest after which time obtains a refinance loan at 70% LTV for $4,550,000 at 6.0% interest, and a 30-year amortization with a 10-year balloon.

 
 
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We Respect Our Clients Confidentiality.
MFG Capital Group has policies in place which are designed to maintain the confidentiality of your workout or restructuring transaction. Because of this we do not release the names, contact information, or property addresses of our clients. Critical details which may be used to determine who a property owner is have been changed on this site and in other materials provided by MFG Capital Group. Because of this all photos and or images used on this site are representative rather than actual photographs.
 





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