The Riviera Apartments in Idaho Falls is one of those classic value-add opportunities. The property had drifted into a state of condition with upside potential. The sponsors had substantial experience in the space, but this was their first multifamily syndication deal. Their legal counsel was adamant about securing a non-recourse debt, so agency money was the best solution. Fannie Mae Small Balance was the best loan program for the deal because we were able to maximize the leverage which was heavily constrained by debt coverage given the current underperformance of the property. We utilized the Green Rewards program to obtain a more favorable rate on this 7-year term with a 30 year amortization.
