Deal Close
July 15, 2026
Type
Multifamily, 48 units
Loan Amount
$6,350,000
Sam Immediato
Debt Placement Team
Executive Summary
This recently delivered property still hadn’t fully stabilized — concessions were still in place — when its construction loan matured, leaving the borrower on short-term extensions while the lease-up finished.
Greysteel structured a non-recourse CMBS refinance using a rate buy-down to solve for the debt service coverage the deal needed, delivering an estimated $600,000–$700,000 more in loan proceeds than a conventional or agency lender would have offered.
The Challenge
The property’s incomplete stabilization, combined with the borrower’s limited liquidity and a complicated personal financial history including prior bankruptcies, made conventional or agency financing difficult to secure at the proceeds level the borrower needed.
The Solution
Greysteel structured a non-recourse CMBS execution — where underwriting focuses on the collateral rather than the sponsor’s personal credit profile — and used a rate buy-down (3.67%) to hit a workable debt service coverage ratio despite a modest in-place debt yield of roughly 7.89%.
Results
- $6,350,000 loan closed, non-recourse
- 1.245x DSCR achieved through a targeted rate buy-down strategy
- Retired maturing construction debt for a still-stabilizing asset
- Delivered an estimated $600,000–$700,000 more in proceeds than conventional or agency alternatives
“Despite ongoing lease-up, concessions, and the borrower’s limited liquidity and complex financial profile, Greysteel structured a non-recourse CMBS execution that maximized loan proceeds through a rate buy-down strategy. The refinancing retired the construction loan, provided a significantly higher loan amount than conventional alternatives, and positioned the sponsor to complete the property’s stabilization.” — Sam Immediato, Greysteel Lead Deal Contact, Debt Placement Team
Greysteel Advisory Expertise
Greysteel is a commercial real estate advisory firm specializing in investment sales and debt and structured finance, serving private investors, middle-market operators, and institutional clients nationwide.
The firm provides sector-focused advisory across multifamily, healthcare, and affordable housing and other commercial real estate asset classes, delivering market intelligence, capital markets expertise, and disciplined execution.
