A commercial real estate broker introduced to a borrower looking to purchase a 123-unit multifamily complex in Houma, Louisiana. Lima One’s quick and certain underwriting allowed the borrower to purchase the property and finance value-add rehab of a large percentage of units with an interest-only loan of $4.3 million.

With this 24-month multifamily bridge loan, the borrowing entity will be able to increase the value of the property and prepare it for takeout funding. With 70% loan-to-cost leverage on the $4 million purchase price and 100% leverage on the $1.3 million rehab budget. It’s a win/win for the borrower and for the Houma community, which gets dozens of upgraded workforce housing units on the market at market-rate rents.

No Interest on Undrawn Construction Funds

Lima One provided 100% leverage on the $1.3 million rehab budget as part of this loan, empowering the investors to rehab 48 of the 123 units after purchase. This rehab was one big reason that the investor will be able to increase the after-repair value of the property to over $8 million, almost double the purchase price. Even better for the borrower, Lima One provided commitment funding, which meant they did not have to pay interest on rehab funds until they are drawn.


Multifamily Purchase Loan By the Numbers