Case Study
From Bridge to Stability: Dual-Property Refinance in Paterson, NJ
Gradient Mortgage Capital partnered with a correspondent client to refinance two multifamily properties for an experienced investor in Paterson, NJ, transitioning the borrower out of a high-cost bridge loan into long-term financing.
The Scenario
The borrower owned two multifamily assets, a 10-unit and a 16-unit property, tied together under a blanket bridge loan.
- Pay off existing bridge debt
- Separate the properties into individual loans
- Secure lower rates with 30-year terms
- Improve overall portfolio performance
The Challenge
- Section 8 exposure on one asset required careful DSCR analysis
- Rent stabilization on the other limited income growth
- Blanket loan structure required coordination to separate
The Solution
Gradient structured two rate and term refinances, converting the bridge loan into separate permanent loans:
Loan 1
Property Type: Multifamily (10 Units)
Loan Amount: $800,000
LTV: 47.1%
DSCR: 1.19x
Loan 2
Property Type: Multifamily (16 Units)
Loan Amount: $1,100,000
LTV: 36.7%
DSCR: 1.59x
The Outcome
Borrower
- Transitioned into long-term financing
- Secured lower rates and 30-year terms
- Improved cash flow and portfolio stability
- Gained flexibility through loan separation
Broker
- 2% compensation on each loan
- $38,000 total compensation
- Successfully executed a complex refinance
Why It Matters
Cash flow-focused underwriting
Experience with rent-restricted assets
Ability to restructure complex loan scenarios
Execution and certainty of close
Built for Deals Like This
Gradient Mortgage Capital focuses on Investor Residential DSCR and Small Balance Commercial Real Estate financing for stabilized assets.
If you are working on a deal with structure, complexity, or timing constraints, our team can help you move it forward and get it closed.