Inland Mortgage Capital (“IMC”) is pleased to announce the recent closing of a $9,250,000 first mortgage bridge loan, secured by two apartment complexes in the Houston Metro. The Borrower had acquired the properties via a hard money loan, and after weathering the recent hurricane and some challenging covenants during that time, decided to refinance with a conventional bridge loan from IMC. The accrual rate on the existing debt was escalating, so the IMC bridge loan was going to generate significant savings on interest.
The Borrower contemplated the risk of riding out the hard money loan until the properties’ occupancy was seasoned enough for a permanent loan, but instead opted for the IMC bridge loan. IMC offered no prepayment premium and a reduced exit fee if the Borrower was able to pay off in short order. Further, IMC allowed for a Borrower-friendly partial release of one of the complexes.
The projects are workforce multifamily complexes that had suffered from deferred maintenance from the previous owner. The Sponsor had performed admirably in improving the properties and the quality of the rent roll. IMC was impressed with the integrity and character demonstrated by the Sponsor, and his focus on this housing sector.
IMC’s flexible loan terms allowed the Borrower breathing room to continue to improve occupancy and Net Operating Income to hopefully maximize proceeds, and the flexibility to release one of the complexes, if needed, without prepayment premium.