The borrower needed to exit a new construction loan on a Miami multifamily property. Every day the exit was delayed added cost.
The delay in closing this refinance cost the borrower roughly $15,000 in additional fees. Had the deal not closed at all, the borrower would have faced significantly higher fines under the construction loan terms.
The file combined a difficult loan amount, asset class, and LTV. The borrower had already approached two other lenders before coming to Brick City Capital, paying for appraisals at each stop without getting the deal done.
One tenant was leasing two units on the property, a structure that caused other lenders to retrade the deal over DSCR thresholds requiring 1.25. Brick City Capital underwrites to 1.15, which kept the file intact.
The appraisal also ran into a disagreement between the appraisal company and the Miami tax assessor over tax uniformity. Brick City Capital contested the appraisal review directly, which raised the property value by $1 million.
Retraded the deal over a DSCR threshold requiring 1.25
Required roughly $80,000 more cash to close from the borrower
Rejected the property over two units leased by the same tenant
Underwrote to a 1.15 DSCR, keeping the loan structure intact
Closed with cash to close about $80,000 lower than the competing lender
Accepted the same-tenant lease structure without requiring changes
The file moved through underwriting, an appraisal dispute, and a final restructure before it closed.
WEEK 1
Brick City Capital reviewed the two units leased by a single tenant and underwrote the file at a 1.15 DSCR, avoiding the retrade that had stalled the deal with two prior lenders.
MID-PROCESS
The appraisal company's valuation conflicted with the Miami tax assessor over tax uniformity. Brick City Capital contested the appraisal review and secured a $1 million increase in the property's value.
CLOSING
The deal closed with the loan amount increased by $725,000 over the original structure, at 67.1% LTV on a 30-year fixed term.
Multifamily properties with non-standard lease structures, such as one tenant leasing multiple units, routinely trigger DSCR retrades at lenders holding to a 1.25 threshold. A lender willing to underwrite to 1.15 keeps files like this from falling apart late in the process.
This deal also showed that a disputed appraisal does not have to end a refinance. Contesting the appraisal review against the tax assessor's figures added meaningful value back into the loan amount.
Increase in loan amount secured through the appraisal dispute and revised valuation
"We fought the appraisal review and bumped up the property by a million."
This refinance reflects specific conditions from the file itself.
Our headquarters
50 Park Place, Suite 301
Newark, NJ 07102
loan products
