Real estate investment is a process that often involves taking out loans on promising properties. The quality of the property, as well as its age, location and size are taken into account during the loan process. Rental properties that have a high monthly income potential can be good candidates for a real estate transaction, especially if they have appeal to high-income renters.
M&T Realty Capital Corp. of New Bedford reported last week that two loans were closed on nearby apartment complexes, one in New Bedford and one in Charlton. The New Bedford loan totaled $1.835 million, and the Charlton loan totaled $4.11 million. Loans for both properties have a ten-year fixed, 30-year amortization structure with rates a little over 4 percent
The New Bedford property, Old Plainville Commons, was built in 1988 and consists of four 12-unit structures. Each unit has two bedrooms and one bathroom, and the complex is near the Rte. 140 exit. The property is landscaped and has its own parking lot. It is near New Bedford’s business district, so the location is good for both commuters and shoppers.
The Charlton complex, which consists of Stafford Heights and Charlton Village, has a total of 72 units; with four of the units containing one bedroom, one bath and the rest are two bedroom units. The Stafford Heights part of the complex was built in 1965, though it has been renovated since that time. The Charlton Village section was built in 1987.
There were a number of parties involved in the real estate financing, which is pretty common in such high-value loans. A separate party sponsored each of the loans while different property management companies will oversee the properties. It can be beneficial in real estate transactions such as these to have an experienced team of real estate law and finance professionals on your side to help locate funding and secure the necessary financial documents for a smooth transaction.
Source: New England Real Estate Journal, “New Bedford, MA – Killion of M&T Realty Corp. closes $5.945 million in financing,” Nov. 7, 2012