A REAL LIFE CASE STUDY
Navigating Rising Interest Rates for a Large Property Development Loan with ARC
We recently worked on a large multifamily property project with a construction loan of over $15 million. As the project progressed, we faced rising interest rates that threatened our borrower's debt service costs and our credit risk.
To address these challenges, we proposed modifying the loan and securing a fixed-rate permanent financing solution. This allowed our borrower to lock in a favorable rate of 5.95% for a 7-year term, while improving our credit position. The successful outcome not only generated significant goodwill but also strengthened our relationship with a valued client.