Structured and arranged a bridge loan to acquire a value-add 384-unit multifamily property.
Challenges
The property sustained significant damage from a tornado in October 2019 and was operating at 15% occupancy. After many months of negotiation, the seller requested a quick close to deal with 1031 requirements.
Solutions
The placement team canvassed a handful of bridge lenders, ultimately settling on one that had recent experience closing deals in the local market. The lender was willing to structure a tiered priced holdback allowing Sponsor to minimize initial equity contributions and reduce negative carry cost.
