Los Angeles – iBorrow, a nationwide private direct lender for commercial real estate, today announced the closing of a $41.6 million loan to refinance a portfolio of five properties in Palm Beach, Florida, as part of its overarching business theme of expanding its lending presence in the Florida market. The portfolio consists of two multifamily properties, a luxury single-family home and two additional single-family homes, totaling 32,636 square feet.
“This $41.6 million refinancing in a highly desirable market provides a powerful demonstration of two of the key pillars of iBorrow’s value proposition: flexibility and speed,” says Andy Peltz, Co-Executive Chairman of iBorrow. “Our borrower needed to close quickly due to the upcoming maturity of the initial loan on the properties, while organizing the redevelopment of the other assets. We were able to move expediently while structuring the loan with certain release provisions to allow the borrower to have flexibility in its future plans.”
Peltz continued, “Florida is and will continue to be a big part of our overall lending strategy as we believe in the fundamentals and growth of the state’s real estate market.”
iBorrow was drawn to the transaction by the sponsors’ strength, the properties’ attractive location and the basis of the loan, notes Peltz. The borrowers’ long and successful track record of real estate investing makes them well-positioned to execute their business plan for the portfolio. Meanwhile, the multifamily properties are 100% and 92% occupied, respectively, and the single-family residences in the portfolio have experienced strong capital appreciation in recent years.
“Thanks to our strong partnerships with Oaktree Capital Management L.P., Encina Lender Finance and other funding sources and our consistent and rigorous risk management practices, iBorrow is very well-positioned in this market to step up and provide the financing solutions that CRE borrowers need. Even some of the most solid borrowers, such as the sponsors on this transaction, have limited choices in today’s constrained lending environment.”
The multifamily properties include 16 and 12 units, respectively. The luxury single-family residence in the portfolio totals approximately 9,122 square feet and includes six bedrooms, seven and a half bathrooms, a swimming pool, and a private dock with lake access.