Inland Mortgage Capital (“IMC”) is pleased to announce the closing of a $3,850,000 non-recourse bridge loan on a multifamily property. The 18-unit, apartment complex is located in Los Angeles, CA. The plans are to complete interior and exterior renovations, such as updating kitchen cabinets, countertops, flooring, AC units, and exterior painting of the building. The Borrower was able to achieve negotiated buyouts of leases with the bulk of the tenants in short order after closing.
Initially, the fact that this was the Sponsor’s largest acquisition and renovation to date was a concern for IMC; however, their success on a smaller deal in the neighborhood and the rapid gentrification of the Korea Town area of Los Angeles provided a lot of comfort. In addition, the Sponsors wanted to serve as the “general contractors” for the renovations to the Project. IMC was able to structure around the risks associated with the deal and provided the Borrowers with a loan that was completely flexible to prepayment, didn’t require a third party general contractor, and didn’t require a LIBOR Cap. Also, with IMC’s loan program, the Borrower wasn’t required to pay interest on the future funding piece, until the monies are disbursed. With the current yield curve, this could be highly advantageous to the Borrower to procure a long-term fixed-rate permanent loan.
