Inland Mortgage Capital (“IMC”) is pleased to announce its first bridge loan closing in Nebraska. A $5,650,000 non-recourse, first mortgage loan was funded to the Borrower to acquire and perform interior and exterior renovations on a 120-unit multifamily property in Omaha.
The property, built in 1964 by the Seller, had seen virtually no change in décor (including carpeting in many of the kitchens), and suffered from deferred maintenance, typical of a 55-year-old property.
Interior renovations will include upgraded vinyl plank flooring, new kitchen cabinets and countertops, new kitchen appliances, new plumbing fixtures in the bathroom and kitchen, and new lighting fixtures, along with new carpeting. The exterior renovations will include new retaining walls, landscaping upgrades, HVAC replacements, office building repairs, and window replacements as needed.
An experienced Sponsor familiar with the area, and a strong location near retail and multiple health care facilities enhanced IMC’s credit decision. The neighborhood in which the property is located has seen a rapid increase in population due to the development of Aksarben Village, with many new multifamily and commercial projects, and continued rapid expansion at the University of Nebraska-Omaha.
Even with its current condition in need of an overhaul, the property was 84% occupied at the time of closing. The Borrower plans on raising rents as renovations are completed, as neighboring properties are showing occupancy rates as high as 96%.
IMC held back sufficient funds to facilitate the redevelopment and the loan is prepayable at any time, without premium.
