Winston-Salem, NC

The Opportunity

An investor group asked their commercial real estate broker to find financing for the purchase of a 246-unit multifamily property in Winston-Salem, NC. The investors needed financing both to buy the property and to complete interior and exterior upgrades in order to stabilize the rent roll.

In addition, the property had a Land Use Restrictive Agreement (LURA) in place, to ensure it remained as
affordable housing. This meant the investors needed an adaptive underwriting approach that could assess the after- repair value of the property with the LURA intact.

The Solution

Lima One financed the property with the LURA in place, while still providing maximum leverage for the investors. The $9.55M loan covered 75% of the purchase price plus 100% of the $1 million rehab budget.

The 24-month interest-only loan closed efficiently while filling all the checkboxes required by the LURA, enabling the investors to improve the property toward an after-repair value of $14M.