AVANT Closes $2.85M Bridge Loan For Multifamily Purchase/Rehab

Posted by Orb Staff on October 07, 2009 No Comments
Categories : Commercial Mortgage

Avant Capital Partners (AVANT), a New York-based commercial mortgage bank that specializes in multifamily financing, closed a bridge loan of approximately $2.85 million for the acquisition and renovation of a 304-unit apartment complex in Dallas.

The loan was based upon 70% loan-to-cost and included the acquisition and renovation costs, as well as an interest reserve. The 24-month interest-only loan was secured through AVANT's relationship with a local bank and carried an interest rate of 7%. The loan also featured a 24-month extension option.

‘We are seeing an increasing number of buyers take advantage of opportunities to purchase bank-owned assets at a significant discount," says Amy Cheng, AVANT's chief underwriter/closer. "While many of these assets can be acquired at a very low price per door, financing is a challenging aspect of the transaction. These properties often exhibit high vacancy, under market rents and deferred maintenance."

This property was 70% occupied at the time of acquisition, but the attractive price per unit presented the sponsors, experienced multifamily investors, with substantial upside, AVANT says.

SOURCE: Avant Capital Partners

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