- Client: European client
- Property Value: Circa $50M
- Loan Amount: Circa $24M
- Property Location: New York, US
Enness Global recently assisted a European client with a complex refinancing and renovation requirement for a high-value commercial real estate asset in New York. The property was held through a Delaware LLC and comprised three residential units alongside a retail space on the ground floor, with an estimated market value of approximately $50M.
The client approached Enness seeking to refinance an existing facility while releasing additional capital to fund planned improvements to the property. A total facility of approximately $24M was required, with around $16M allocated to refinance the existing debt and a further $8M intended to fund an extensive refurbishment and modernisation programme. The proposed works were designed to enhance the property's rental yield and long-term value.
The cross-border nature of the transaction presented additional considerations. The client was European, while the underlying US property was held through a Delaware LLC, requiring a lender comfortable with both the ownership structure and the international nature of the borrower. Enness worked closely with the client and a carefully selected lender with experience in US real estate and international borrowers.
Enness successfully negotiated a short-term facility with competitive terms over a two-year interest-only period. The structure provided the client with the capital required to refinance the existing facility while also funding the planned renovation works. The facility included no prepayment penalties, providing additional flexibility should the client decide to refinance or sell the asset before the end of the agreed term.
Speed was also an important consideration. Given the client's refinancing requirements and planned investment into the property, Enness progressed the transaction efficiently and secured completion within approximately one month of engagement.
This case demonstrates the importance of specialist expertise when arranging finance for high-value US property held through corporate structures. International borrowers can face additional hurdles when seeking financing, particularly where the transaction combines refinancing, capital raising and property improvements. Working with a lender familiar with these requirements can help create a structure suited to the underlying asset and the client's wider objectives.
Enness has access to a broad network of international lenders and specialises in complex cross-border transactions for high-net-worth and ultra-high-net-worth clients. Our experience across international property finance allows us to identify bespoke solutions for clients with significant real estate holdings across different jurisdictions.
If you require finance for a high-value US property, refinancing, or a cross-border real estate transaction, speak to a mortgage specialist to discuss your requirements.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
