$4,500,000 Acquisition & Reposition Mixed-Use Bridge Loan

George Smith Partners secured the $4,504,500 acquisition bridge loan for the purchase of a mixed use property containing 37 residential units, 2 retail units, an attached parking lot, and a rooftop billboard. Although located within two miles of several extremely strong rental markets, the subject is positioned in an area dominated by low income families. City rent control has many tenants paying well below market rent, thus, at 70% of purchase price, the debt coverage was less than 1.0.

To address the cash-flow shortfall, our Sponsor’s business plan is to quickly re-lease the parking lot and billboard at market rates, while simultaneously renovating and re-tenanting residential units over a three-year period. Based on that plan, our portfolio capital provider advanced 70% of the purchase price, with only a small holdback to be released once the property achieves a 1.25 DCR. Capital expenditure & renovation funds are entirely controlled by the Sponsor in a standard checking account. The loan was committed and ready to fund within 30 days of the executed application. Floating at Prime plus 0.5% floored at 4.25%, the five year loan allows for two years of interest only before rolling into a 30 year amortization schedule.