100-Unit Multifamily Bridge Loan

Deal Summary

The Situation

An experienced multifamily operator acquired a 100-unit apartment community that needed operational improvements and selective unit upgrades to reach market rents. The property was cash-flowing but underperforming relative to the submarket.

The Challenge

The property's current NOI didn't support permanent agency financing at an attractive basis. The borrower needed bridge capital to fund the acquisition and execute a 12-18 month stabilization plan before refinancing into long-term debt.

The Structure

CapitalAx arranged a $4,800,000 bridge loan through a private lender with interest-only payments, a renovation reserve, and flexible prepayment terms to allow early refinance once stabilization targets were met.

The Solution

CapitalAx prepared a detailed unit renovation scope, rent comp analysis, and month-by-month stabilization timeline that gave the private lender confidence in the execution plan and exit strategy.

The Outcome

The borrower executed the business plan ahead of schedule, increasing effective rents and reducing vacancy. The property was positioned for a conventional or agency refinance at significantly improved valuation.