A second-generation owner of a stabilized 75-unit apartment property in Kearny, valued at approximately $13.5M, was carrying the legacy bank loans the family had used for decades: short maturities, full recourse, periodic renewal risk. GSM arranged the property's first agency loan, non-recourse with a long-term rate lock and extended amortization, closing in June 2023.
The property is a stabilized 75-unit multifamily asset in Kearny, built and originally financed by the owner's father and held by the family for decades. Its financing had been put in place through longstanding local bank relationships: legacy loans with shorter maturities, full recourse and periodic renewal risk.
That structure worked for the prior generation but did not fit the current owner's long-term hold strategy. The owner had never explored agency financing and had not seen the structural advantages available on a stabilized asset of this size.
GSM Commercial Capital structured the owner's first agency loan on the property, replacing the legacy bank debt with non-recourse financing that carries a long-term rate lock and extended amortization. The loan closed in June 2023.
The result is a modern capital structure on a $13.5M asset, aligned with a multigenerational hold: non-recourse financing in place of full-recourse bank debt, and long-term stability for the portfolio. Inherited portfolios often carry inherited financing; updating the structure can unlock value without changing the asset itself.