128-Unit Multifamily Value-Add Acquisition

Southwest, US

$16,100,000

Funding Purpose

Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place a non-recourse bridge loan for the acquisition of a 128-unit multifamily complex in the Southwestern US.

Property Description

The three-story apartment has been partially renovated. The sponsor plans to make significant exterior improvements along with implementing an elevated kitchen package for select units. Each of the two buildings has an updated pool and common areas, and the property has a newly renovated management office, laundry room, and mail room.

Sponsors

This is the sponsor’s third acquisition in the market within the last 18 months. The asset is an important piece of their plan to continue to expand their portfolio and units under management.

Challenges

  • Floating interest rates started to rise dramatically
  • The property experienced bumpy occupancy while in escrow

Solutions

  • Purchased an interest rate cap to effectively fix the interest rate
  • Highlighted the ability to make significant exterior improvements to increase curb appeal

Funding

  • Loan Amount: $16,100,000
  • Loan-to-Cost: 68%
  • Interest Rate: 30-Term SOFR + 4.50%
  • Origination/Exit Fee: 10% / 0.25%
  • Amortization: Non-Recourse w/ Badboy Carveouts

Senior Director  | Capital Advisor

310-963-1350

podonnell@taurocapitaladvisors.com