Financial Advisory Case Study

An established property owner wanted financing to redevelop its existing rental housing and ensure continued control of the properties.  The owner also sought to streamline accounting and oversight through consolidation of ownership and financing, while providing funds for property rehabilitation.

SPECIFIC CHALLENGES

The properties included various sizes and locations and none of them were viable on a stand-alone basis for new financing or use of the low-income housing tax credit program.  To complicate matters, the prior loans covered a broad range of terms, maturity dates, regulatory covenants and prepayment restrictions.

STRATEGY & SOLUTION

Veloce Partners developed a new financial plan that was successful in meeting all the client’s needs.  The plan used a combination of city-issued tax-exempt financing, restructuring of existing loans, consolidation of regulatory agreements, and consolidation of scattered sites as collateral for a single, new loan and ownership structure.  This new structure enabled the client to retain management oversight of the property, receive a developer fee, and fund all necessary renovations.