Inland Mortgage Capital has closed its first loan in Kentucky, under its non-recourse bridge program. The $2,600,000 non-recourse loan was used to acquire an 84-unit, garden-style multifamily property in Lexington.
IMC demonstrated its commitment to close on the financing after a previously undisclosed delinquent tenant report surfaced a few days prior to the scheduled closing. The effective occupancy was determined to be 72%, as opposed to the 88% originally indicated in previous reports from the Seller.
IMC and the Borrower were able to structure around the unexpected discovery, due to its belief in the submarket fundamentals and sponsorship, enabling the Borrower to close on the acquisition. As always, IMC will not charge interest on the future advances until they are disbursed. Part of the loan proceeds will be used to renovate the Class-C buildings, which were constructed in the 70’s. While a few of the units have been updated, the Borrower plans to modernize the remainder. Interior and exterior planned renovations include new kitchen counter tops and cabinets, new appliances, refreshed bathrooms, window replacements, and roof repairs.