The Philipsborn Company structured and arranged a fixed rate permanent loan of $4,700,000 for the acquisition of this 120 unit apartment complex. The financing was based upon a future net income to be achieved and the incremental amount of loan proceeds was secured by a Letter Of Credit. This innovative structure allowed the buyer to lock in the current interest rate, and to obtain a higher funding at the time of closing, reducing the amount of equity required, and eliminating the need for secondary debt at a later date. Funds were provided by a CMBS conduit for whom The Philipsborn Company services loans.

Richton Square Apartments
Richton Park, Illinois

The Philipsborn Company structured and procured a long term fixed-rate loan that refinanced the existing indebtedness of this 342-unit, 30 year-old apartment complex. In prior years The Philipsborn Company had negotiated and placed the equity and construction funds necessary to acquire and rehabilitate the complex that was then in disrepair and suffering from high vacancy. At the time of refinancing, the property was 97% occupied. First mortgage funds were provided by a FNMA (DUS) lender.