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5/04/17
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Continental Partners arranged $38.5 mil in financing on Bel Brook and Hideaway Apartments, a 146-unit multifamily property in the San Leandro submarket of the East Bay. The financing consists of a $31 mil bridge loan, as well as $7.5 mil of joint venture equity.
The floating-rate, non-recourse, interest-only loan was used to purchase and renovate the property. The four-year term loan has an additional one-year extension and four years of interest-only payments. The bridge loan was sized to 85% of purchase price and 72% of total cost, which included an interest reserve and renovation costs.
The borrower plans to completely rebrand the property by performing extensive renovations to the interior and exterior including the installation of new vinyl wood plank flooring, modern cabinetry, quartz countertops, new kitchen appliances and tonal painting. They will be able to pay off the loan after 12 months without a prepayment penalty. The equity portion of the transaction was arranged with an equity fund that agreed to provide a majority of the equity in a TIC borrower structure.
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