East Moline, IL

The Opportunity

Through a commercial broker, an investment group sought financing for the purchase and rehab of a 114-unit property in East Moline, one of the Quad Cities on the Illinois side of the Mississippi River.

At the time of purchase, only about a dozen of the property’s 114 units had been rehabbed, and the investor needed financing that would allow them to keep units unoccupied in order to complete interior rehabs.

The Solution

Lima One offered a multifamily loan that offered interest-only financing. The $3.7 million loan covered 75% of the costs of both purchase and rehab, and offered 70% leverage against the after-repair value of $5.3 million.

This bridge financing approach gave the investors time and money to upgrade units, allowing them to stabilize the rent roll at market rates, while preparing the property for long-term take-out financing.