The Property

The Howard Street portfolio is a four-property residential portfolio consisting of two single-family homes and two duplexes. The assets operate as small-balance rental housing with strong demand fundamentals and meaningful rent upside.

Current market rents range from approximately $1,995 to $2,495 per unit, positioning the portfolio well within a durable renter segment. The combined portfolio carries an estimated current market value of $2,500,000 and offered long-term upside through continued rent growth rather than speculative repositioning.

The client’s priority was not expansion. It was control.

Execute a partner buyout, remove personal guarantees, and stabilize ownership without injecting new capital.

The Challenge

This transaction was driven by timing, not opportunity.

The client faced a firm deadline to complete a partner buyout and remove the partner from personal guarantees across all properties. Existing debt originated as construction financing and rolled into a permanent loan with a local bank. Leverage was already elevated, leaving little margin for error.

Several challenges emerged simultaneously:
• The partner buyout agreement was slow to finalize, delaying execution clarity  
• The existing bank was slow to complete title transfers on unrelated properties  
• Appraisals on two properties came in approximately $100,000 below expectations  
• Lower valuations threatened the ability to retire existing debt

The Solution

The path forward required patience, flexibility, and a lender willing to solve problems.

We worked with a lender offering discretionary capital capable of navigating shifting documentation, valuation friction, and structural changes.

When appraisal values held firm, we pivoted from a cash-out refinance to a rate-and-term execution.

The deal was structured at 80 percent loan-to-value with taxes, insurance, and loan fees rolled into the loan to maintain a cash neutral outcome.

Despite delays outside the borrower’s control, execution was managed carefully to meet deadlines.

The Results

• Loan Type: Rate and Term Refinance  
• Loan to Value: 80 percent  
• Term: 10 years  
• Interest Only: Full term  
• Cash to Close: $0  
• Status: Closed

Summary

This transaction was about control, not capital.

Despite appraisal pressure and documentation delays, the borrower completed a partner buyout, removed personal guarantees, and secured long-term financing without injecting new equity.

The Howard Street portfolio refinance delivered ownership clarity, cash neutrality, and long-term stability.