Dixon Link Capital successfully arranged $3.4 million in bridge financing for a multifamily property in Atlanta, Georgia.
Loan proceeds were used to refinance the borrower’s existing mortgage and complete renovations on the 28-unit multifamily property.
Transaction Highlights
The Challenge: Great Multifamily Property, Tough Circumstances
Time was of the essence for this multifamily transaction. The borrower’s mortgage on the apartment complex had matured. The Atlanta property’s long-term corporate tenant, which had occupied almost 100% of the units, had recently vacated in search of lower rental rates. Additionally, the sponsor was in the process of completing renovations to the multifamily property, in which they’d invested significant capital since purchasing in 2019. With time and funds running low, this seasoned real estate investor needed a financing solution that would bridge the gap – and quickly.
The Solution: A Bridge Loan with an Exit Plan
Working with a nationwide network of lenders, Faith Link, Managing Partner at Dixon Link Capital, helped the borrower secure and analyze multiple competitive term sheets. Of these options, the sponsor ultimately chose an industry-leading direct lender based in Miami, Florida, for the transaction.
The lender, with a strong track record of success in multifamily deals, provided a $3.4 million bridge loan, equal to 80% loan-to-stabilized-value, for a 24-month term with interest-only payments. This loan structure gives the borrower sufficient time and funds to finish renovations, lease-up remaining units, and be prepared to refinance into long-term agency debt.
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At 80% LTV, loan proceeds allowed for the sponsor, who had invested significant funds to increase the multifamily property’s value since 2019, to be reimbursed for renovations already completed while still providing sufficient interest reserves. Moreover, the lender and Ms. Link worked diligently to ensure the borrower did not have to bring additional funds to the closing table.
For Challenging, Time-Sensitive Deals, Dixon Link Capital Delivers
Whether a borrower is running low on time, funds, or both – Dixon Link Capital has the expertise, resources, and relationships to source competitive financing solutions for commercial real estate transactions. Ready to close your next CRE deal? Get started here.
Dixon Link Capital is a commercial mortgage broker based in Jacksonville, Florida, specializing in commercial real estate. We are proud to be “Your Link to Lenders!“
