Guardrail Finance recently arranged and closed an Agency loan with Freddie Mac on a 55-unit multifamily property in Everett, Washington.
The property went through a full renovation on both the exteriors and interiors over a 2-year period. The property also performed well during the pandemic, so the property was well positioned to complete a cash out refinance. There was one challenge with timing to close the loan, as there was a fire in one of the units as the loan commitment was about to be signed, so getting resolution on the unit restoration was important prior to closing. This delay ended up being a plus in that we were able to lock rate on an assumable loan in the high 2% range. The plusses with the loan are that the site is in a growing area in Everett, the rents are still below market so occupancy and upside potential are both available for the ownership, and the loan itself is low rate and assumable on a non-recourse basis.