Inland Mortgage Capital (IMC) recently originated a $3,800,000 first mortgage loan on a 16-unit San Diego apartment complex. A portion of the loan will be utilized to renovate both the property’s interior and exterior. Future plans include updating the units with new washer, dryers, kitchen appliances, and cabinets. Exterior renovation plans call for roof and window repairs, HVAC replacement, painting, and improving the current parking.
The apartment complex is in an incredible location just a block away from the Pacific Ocean, and eight miles from downtown San Diego. Located minutes from the property are the San Diego Airport, University of California at San Diego, San Diego State University, Sea World, Coronado Island, and the San Diego Zoo.
Inland Mortgage Capital was able to close the loan after another bridge lender initially quoted and “won” it but couldn't execute. The ability for Inland to move quickly was essential to the Borrower, who has been forced to close with an expensive short-term loan and was facing additional fees if further time had passed.
Further challenging Inland, the Appraiser was more conservative on pro forma rent and net operating income, versus was Inland’s underwriting. Notwithstanding those challenges, IMC delivered on its quote. As is typical, IMC does not charge interest on future funding. Additionally, there was no prepayment premiums, so the Borrower could prepay at any time.