Commercial developer has Brownstones in Philadelphia refinanced
5/9/2014 | Real Estate Blog
Refinancing of 15 brownstones in Philadelphia was completed at $15.5 million in refinancing. Funding for the refinancing was orchestrated by a private commercial real estate brokerage as a 3.5 percent interest rate was set for seven years.
The financing was broken up into two separate loans. The properties had been in foreclosure prior to the refinancing and have since been renovated into apartment buildings. The refinancing concerned a construction loan that was taken out for initial improvements to the properties.
We forget sometimes the benefits of such commercial real estate transactions. If financing is not provided for commercial real estate developers, property may be left abandoned and unmaintained. This in turn can result in lower property values for anyone owning property in the same vicinity.
Commercial real estate transactions can be relatively small or involve large sums of money. Regardless of the size, these types of transactions are generally complex. There are often a variety of parties involved, and each party will have their own concerns when it comes to these matters. It’s important that mistakes are not made that can result in disputes and even litigation.
Property owners and developers will likely require the assistance of attorneys that understand real estate transactions, however. It can be difficult to find consultants with knowledge of the real estate industry who can view each transaction objectively. Attorneys can also prepare purchase and sales agreements, review all of the financing documents and construction contracts, work through various title issues and make certain that all local zoning ordinances and restrictions are followed.
Source: Philadelphia Business Journal, “15 brownstones refinanced for $15.5 million,” Natalie Kostelni, April 17, 2014