Case Study

Multifamily

Refinancing Saved, Excess Flood Insurance Mandate Removed, and $1MM+ in Property Value Added for Terre Haute, IN, Multifamily Property

Terre Haute , IN

Image of Multifamily property for Refinancing Saved, Excess Flood Insurance Mandate Removed, and $1MM+ in Property Value Added for Terre Haute, IN, Multifamily Property

$1MM+ in Added Property Value

Solutions Found:

LOMA

Flood Expert Survey

Solutions Value: $65,000+ NOI Increase | $1MM+ in Added Property Value

NFE Solution: FES, LOMA

Our Client, an owner of a multifamily property in Terre Haute, IN, was in the middle of refinancing the property when a surprising lender mandate for National Flood Insurance Program (NFIP) AND excess flood insurance coverage nearly derailed their plans. Having worked with NFE in the past, their insurance agent referred this Client to us to review the property and hopefully find a solution to make the numbers work and allow the Client to secure approval for the loan.

Solution: NFE gathered the relevant documents and performed the initial desktop review, which identified a high likelihood that many buildings would qualify for removal from the Special Flood Hazard Area (SFHA) through a Letter of Map Amendment (LOMA). To fully confirm the solution, additional property-specific data was required. The Client agreed to have NFE perform a Flood Expert Survey (FES) of the property. After an exhaustive review of the new data, NFE's engineers qualified 29 of the 36 buildings for a LOMA.

The entire project was expedited through FEMA, and the LOMA was secured in under two weeks, just in time to save the refinance!

Net Operating Income (NOI) & Property Value Impact: Our solution not only saved the refinancing process for the Client but also created a substantial $65,250 boost to NOI. The LOMA also increased property value by a whooping $1MM+!

In conclusion, this case study embodies how NFE’s comprehensive engineering reviews can facilitate overcoming lender hurdles, generate significant savings, and enhance property value.

View Other Case Studies

Image of Multifamily property for 19 of 29 Buildings Removed from SFHA

$365K+ Added in Property Value

19 of 29 Buildings Removed from SFHA - Coral Springs, FL

On a rushed timeline due to an upcoming sale, NFE's flood experts helped the nation's largest multi-family property owner save ≈$22K in annual flood insurance premiums while also adding $365K in property value for a 29-building property in Coral Springs, FL. NFE’s field work and engineering review maximized cost savings and helped the current and future owners avoid costly premium hikes on the horizon.

Image of Multifamily property for MD Multifamily Property - $48K NOI Increase

$48,000 NOI Increase

MD Multifamily Property - $48K NOI Increase - Dundalk, MD

A 60 building property just outside of Baltimore, MD, saved $48,000 in flood insurance premiums after our engineering review qualified 11 buildings for removal from the flood zone, removing the lender mandate for flood insurance.

Image of Condominium property for Condo Association | $10k in Savings

$73K premium increase avoided!

Condo Association | $10k in Savings - Sarasota, FL

A Condo HOA's premium was set to increase from $17,000/year to potentially $90,000+; our team qualified a scenario that resulted in a premium of only $7,000/year.