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When refinancing options fell short, the Borrower engaged a sophisticated boutique mortgage banking firm to explore alternatives. After approaching multiple lenders with no viable path to refinance the maturing loan amid rising rates and tightening credit conditions, the mortgage banker introduced the Borrower to The Henley Group. Henley was brought in to negotiate a path forward that would stabilize the asset, avoid default, and secure critical time for market recovery.
Challenge:
Rising interest rates, higher capitalization rates, and conservative lending standards made refinancing nearly impossible. Despite approaching multiple lenders, available terms fell well below the existing loan balance. The Borrower faced an imminent default and needed a creative solution to bridge the financing gap.
Solution:
The Henley Group negotiated a 30-month loan extension supported by modest equity infusion to reduce principal. The modified loan carried a favorable 5.5% interest-only rate. The structure provided immediate relief while leveraging the property’s strong tenant performance to preserve long-term value.
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