Property Type: 80 Unit Apartment Complex Loan Amount: $8,000,000 Loan: Bridge and Permanent Financing
Transaction Summary: New York Commercial Lending arranged a 90% loan for a client who acquired a Section 8 property and converted the units to market rate rents. The financing was structured with two notes, a six month bridge loan which provided the borrower time to transition to the higher rents and a permanent loan which retired the bridge loan. NYCL underwrote the loan based on the higher rates and negotiated with the lender to fund an operating deficit reserve during the ramp up. Under the loan terms, the borrower can secure a second mortgage after 12-months and recapture his initial equity.