Lima One works with borrowers across the country on multifamily bridge loans designed to help them achieve their overall real estate investment strategy. In this case, a commercial real estate broker introduced us to a borrower group that wanted to purchase a 246-unit property in Winston-Salem, North Carolina.
Lima One provided a $9.55 million loan to cover 75% of the purchase price for the property, plus 100% of the rehab costs for the $1 million that the investors wanted to spend on interior and exterior upgrades. These upgrades led to an appraised after-rehab value of $14 million, giving the investors plenty of equity and a LTARV leverage of 68% for the interest-only loan.
The 24-month, non-recourse loan also covered the LURA (land use restrictive agreement) in place on the property. Lima One helped the borrower with all the details needed to successfully close this loan to add this property to their growing real estate investment portfolio.