NEW YORK, NY - Avant Capital Partners (Avant), a leading New York City commercial mortgage bank, closed a bridge loan of $4,575,000 for the acquisition and renovation of a 209-unit apartment complex in Oklahoma City, OK. The interest-only loan was secured through Avant's relationship with a community bank at 5.25%. The loan is convertible to permanent financing upon completion of the renovation and lease-up. The loan was based upon 70% loan-to-cost.
"Multifamily financing is not just about Fannie Mae, particularly for properties in transition, so investors and sales brokers who are relying upon that single source of liquidity will be at a relative disadvantage in the marketplace," says Avant's Managing Principal Adam Luysterborghs. Avant Capital Partners, as a nationwide multifamily lender, represents a broad range of institutional investors, including Fannie Mae, and is capable of financing stabilized as well as in-transition assets.
This particular property was 40% occupied at the time of acquisition, but was located in a desirable submarket of Oklahoma City and presented the sponsors with an opportunity to turnaround an underperforming asset with substantial upside. The sponsors are experienced multifamily investors with a strong operational presence in the Oklahoma City marketplace. Avant Capital Partners is a multifamily bridge lender with a number of recent closings in Oklahoma City & Dallas.
"Many investors are finding value-add opportunities in markets like Oklahoma & Texas and we are providing multifamily loans on a regular basis to good borrowers," says Avant's Chief Underwriter Amy Cheng.
"Community banks, such as the one involved with this transaction, are often staffed by experienced commercial bankers with very strong local knowledge. This local knowledge, when paired with a strong project sponsor, can result in a good working relationship throughout the project and a much more informed consideration of risk for properties in transition. In this sense, the bank and the borrowers are equally winners," says Luysterborghs.
About Avant Capital Partners - Avant Capital Partners is a lender and correspondent for several institutional investors and investment banks and provides commercial mortgages for stabilized and in-transition investment properties nationwide.
Source: Business Wire