Inland Mortgage Capital, LLC (“IMC”) is pleased to announce the closing of a $5,120,000 non-recourse bridge loan, to acquire and improve an apartment complex in Garden Grove, CA.
The 24-unit multifamily property will be utilizing the proceeds for extensive renovations to both the interior and exterior. IMC structured the loan flexibly to allow the Borrower to prepay the loan at any time without premium, and didn’t require a LIBOR cap. Also, IMC did not charge any interest on the future funding piece until drawn by the Borrower.
Interior renovations will include stainless steel appliances, new bathroom and kitchen cabinets, quartz countertops and backsplashes, new window treatments, plumbing fixtures, and vinyl plank flooring in the units. Exterior renovations will entail new lighting installation, laundry facility improvements, exterior paint, and courtyard upgrades.
IMC felt confident in the Borrower’s ability to execute the business plan, as this marks the third time working with the same highly experienced Sponsors, who have a great understanding of the multifamily markets in southern CA. Despite the underwritten rents increasing significantly from the current in-place rents, with the extensive improvements to the property, the rapid population growth, and market tightness, IMC expects the Borrower to do very well on this deal.
With no prepayment premium, the Borrower can take advantage of very low long-term, fixed-rate financing as soon as the project is ready.
