Case Studies

DAY CARE ACQUISITION FINANCING 

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Property Snapshot

    Location: WASHINGTON, D.C.
    Purchase Price: $7.96M ($421/SF)
    Loan Amount: $5.57M (70% LTV)
    DSCR: Less than a 1.00x DSCR
    Property Type: Single-tenant, net-leased Montessori school
    Lease: Double Net (NN), 3 years remaining
    In-Place Rent: $28.80/SF (market rent $70/SF)
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Challenges

The deal faced multiple challenges, including a short three-year lease term that limited interest from local banks preferring longer cash flow stability, and in-place rents that were significantly below market, resulting in a DSCR well under the typical 1.25x. The borrower’s preference for a local bank further narrowed lender options, and while the appraisal came in above the purchase price, tighter-than-expected appraisal cash flows led several lenders to propose re-trades—some even lowering the loan amount.

Phone: +1 (847) 757-3973

Email: moc.latipacenotselbram%40nietslemrema

Hours: Always Closing Deals

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Phone: +1 (847) 757-3973

Email: moc.latipacenotselbram%40nietslemrema

Hours: Always Closing Deals

© Site Developed By BEYOND REACH MEDIA | All Rights Reserved