Inland Mortgage Capital closed a $7,500,000 non-recourse bridge loan on a student housing property, located in Bloomington, IN. The 108 unit (298 bed) property is conveniently 4 miles southwest of the campus of Indiana University.
The townhouse-style property will be getting interior and exterior renovations including upgraded flooring, countertops, and lighting fixtures, as well as parking lot, fence, and reconstructed entry stairways. Inland arranged a future funding structure for the expected improvements within its loan allowing the Borrower to avoid paying interest on the future funding portion until the monies are disbursed.
The Borrower recently acquired the property via foreclosure. During the receivership prior to the foreclosure, the Receiver was able to drive occupancy for the 2017-2018 school year despite significant deferred maintenance demonstrating strong demand and driven leasing efforts.
IMC bought into the Borrower’s business plan that the repairs to the deferred maintenance and upgrades to the interiors would increase rents and create significant additional value.
The Loan-To-Cost for this non-recourse loan was 73%.
