Arlington, TX

The Opportunity

A Texas real estate investor needed to refinance his 4- building, 16-unit property in downtown Arlington, Texas, a city in the heart of the Dallas/Fort Worth MSA. The investor sought to improve both the interior and exterior aesthetics with heavy building-by-building rehab to improve the quality of this Class B property in order to rent to tenants looking for quality workforce or student housing close to businesses as well as the University of Texas at Arlington.

Contractors told this investor renovations would take between four and six months to complete. The list included adding new flooring, countertops, ceiling fans, painting each unit, upgrading toilets and show fixtures, installing new windows, and repairing the roof on each building.

The Solution

Lima One financed a multifamily bridge loan to cover the refinance of the property, as well as a $400K rehab budget to complete needed upgrades. Once these renovations are complete, the investor will focus on raising unit rents. Currently, rent in this multifamily property is significantly below market levels.

The upgrades funded by this multifamily bridge loan will allow the investor to increase the rents, improving cash flow over the long term while offering new quality living options for Arlington tenants.