The Property 

Cedar Commons is a 20-unit apartment community tucked into the growing market of Burgaw, NC. Though modest in size, this property offered solid potential when the borrower acquired it just over a year ago. At the time of purchase, the property needed improvements—not only to boost appeal and rents, but also to meet the strict standards of agency lenders like Freddie Mac. 

This was the client’s first experience securing agency debt, and their first deal with us. What began as a value-add project soon became a year-long journey to elevate the property—and the financing—to institutional quality. 

The Challenge 

While the borrower had experience in multifamily ownership, this was their first foray into agency financing. That alone comes with a steep learning curve. But timing added another layer of complexity: interest rates were on the rise, and Freddie Mac’s approval process had slowed, causing uncertainty at key milestones. 

The borrower had a clear objective: refinance within a year of purchase, after completing capital improvements. But agency financing isn’t just about the numbers—it’s also about the condition and compliance of the property. To unlock the full value, the borrower needed to finish upgrades and repairs that would satisfy agency requirements. Delays could put the entire strategy—and cash flow projections—at risk. 

The Solution 

We took a proactive, hands-on approach from the start: 

• Strategic Loan Structuring: We leveraged the borrower’s full cost basis—including both the original purchase price and the capital improvements—to justify a higher loan amount. 

• Long-Term Partnership: For over a year, we stayed in close contact, helping the borrower navigate every step of the renovation process and ensuring that all property repairs aligned with Freddie Mac’s expectations. 

• Negotiating the Rate: Though Freddie Mac loans typically lock rates at application, we pushed for flexibility. When the rate environment improved, we successfully negotiated a drop—from 6.25% down to 5.92%. 

• Navigating Approval Delays: Freddie’s process took longer than expected, but we kept the borrower engaged, moving forward with clear guidance and steady communication. 

• Post-Close Flexibility: After the loan closed, the borrower requested an ownership structure change. We acted quickly and secured agency approval within 30 days. 

The Results 

• Loan Amount: $1,375,000 

• Interest Rate: Reduced from 6.25% to 5.92% 

• Term: 10 years, with 4 years interest-only 

• Post-Close Support: Ownership structure amendment approved within 30 days 

Why It Matters 

Cedar Commons is a success story built on collaboration and vision. The borrower didn’t just improve a property—they transformed it into a stabilized, financeable asset, with long-term debt in place at a favorable rate. 

This deal also highlights the importance of strategy and advocacy in the agency lending space. From navigating rate volatility to staying engaged during a slow approval process, we ensured the borrower had the support—and the structure—to win. 

For a first-time agency borrower, that kind of outcome isn’t just a milestone. It’s a foundation for growth.