Property Type: 32 Unit Apartment Complex Loan Amount: $1,200,000 Loan: Acquisition Financing
Transaction Summary: A real estate developer came to us looking to finance the acquisition of an older apartment complex that suffered from deferred maintenance. With heating and window upgrades along with some landscaping, the project would support a rent increase to bring them to current market levels. New York Commercial Lending proposed a 35 year HUD 223(f) loan that provided 85% financing for the acquisition and proposed improvements totaling $155K. NYCL was able to process the loan giving credit to the value added by the improvements, which supported a substantial rent increase. The appraised value of the property with repairs and increased rent showed appreciation of over $500K above costs.