Multifamily Value-Add Loan – Huntsville, AL
Borrowers, and the commercial real estate brokers who represent them, choose financing options for lots of reasons–low interest rates, favorable terms, and more. But perhaps the most important thing that a real estate financing partner provides is certainty. That’s Lima One Capital’s specialty, and it shone through in this value-add multifamily deal.
A commercial real estate broker was helping an out-of-state sponsor find financing for a 118-unit multifamily property plus three smaller nearby properties in Huntsville, Alabama. The borrowing group needed financing to account for the scattered site and a tenancy in common (TIC) agreement, while still closing under the tight timeline required by the desired 1031 exchange. Lima One checked all the boxes on a multifamily bridge loan that covered the purchase and value-add rehab of the properties.
Multifamily Bridge Loan By the Numbers
- Loan Purpose: Purchase and Value-Add Rehab
- 135 total units across four properties
- Loan Amount: $5.01 million
- Loan-to-After-Repair-Value Leverage: 56%
- Rehab Budget Leverage: 100%
- After-Repair Value: $8.9 million
- Loan Term: 3 years
- Interest Only
Real Solutions for Sophisticated Real Estate Investors
Lima One didn’t only demonstrate the ability to address the ownership structure of the borrowing entity. We also provided competitive low interest rates on an interest-only, non-recourse loan, and closed the deal quickly. The result was a win for the borrower and the broker, who got everything they needed from a true partner in Lima One.