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Deal Details
Private Loan Type
Commercial Long Term
Approx. Funding Date
10/10/2023
Property Type
Property City
Rahway
Property State
NJ
Loan Term (months)
360
Payment Type
Amortized
Purchase Price
$1,500,000
Loan-to-Purchase Price
65%
Borrower's Contribution to Purchase
35%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.20
Location Type
Urban
Property Condition
Excellent
Occupancy at Closing
All Units Occupied
Number of Units
9
Building Square Footage
5,200
Borrower's Plan
Long-Term Rental
Borrower Credit Rating
Excellent
Interest Rate
7.89%
Origination Points
4.5%
Deal Summary
RCN Capital, a national direct private lender, funded a $975,000 1st lien position long-term rental loan for the acquisition of a 9-unit multifamily property in Rahway, NJ. We funded 65% of the $1,500,000 purchase price, while the Borrower contributed 35% cash to the purchase at closing. The Borrowers are under contract to acquire the property with intentions of adding it to their existing rental portfolio. The property was fully occupied at closing. They intend to bring a few units above market rent once the property is acquired (currently, the owner is collecting rent under market figures). The Borrowers have excellent credit with a mid-score of 752 and bank statements that evidenced solid assets/liquidity. All credit reports are free from issues/derogatory, accounts/liens, and judgments. All background reports were clear of issues. The subject property is approximately 5,200 square feet. The interest rate was fixed at 7.89% with amortized payments and we charged 4.5% origination points. The DSCR was 1.20. The loan term was set at 30 years. This DSCR rental loan was funded in October 2023.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Michael Vivenzio
Loan Officer
Michael joined the RCN Capital team in the summer of 2020. Michael strives to develop meaningful long-lasting relationships with brokers and borrowers to help them achieve their financial goals. Michael comes into this position with a passion for real estate born from experience with his family-run Real Estate investment business over the past 5 years. Michael is from Massachusetts and earned a Bachelor’s Degree from Merrimack College in 2018.