CHICAGO, IL - American Street Capital (ASC) announced today that it has arranged a $17.27 million value-add bridge loan for the 200-unit Flint River Apartments community located in Jonesboro, GA.
Situated 15 miles south of the Atlanta central business district, Jonesboro is a southern suburb with a growing workforce housing market in the Atlanta MSA. The property is a 1971 construction, townhouse-style standard amenity community which encompasses 17 buildings on 13 acres with a mix of one-, two-, and three-bedroom apartments.
Operated by an out of market owner, the property had started to experience extensive deferred maintenance, occupancy issues, and had one of the buildings lost in a fire. They were willing to accept a competitive off-market offer conditional on a very short closing timeframe. A repeat, well established sponsor required a high leverage, non-recourse acquisition and rehab bridge loan with an assured execution within 45 days of going under contract to meet the seller’s timeline and preserve the non-refundable deposit. ASC successfully sourced the high-leverage, non-recourse bridge loan that was competitively priced, included a three year interest only term and supported the sponsor’s entire capital improvements plan including rebuilding the burned down building.
The loan structure reinforced the sponsor’s business plan to provide extensive upgrades to the common areas and in-unit amenities to establish Flint River Apartments as the preferred living destination in that community. Planned improvements include an upgraded leasing office, market competitive fitness center, and a higher end amenity package for all residential units. Current amenities include a putting green, swimming pool, playground, leasing office, laundry facilities, and 353 surface parking spaces.
The asset was 85 percent occupied at closing. The loan was successfully placed with Thorofare Capital, a correspondent debt fund lender. Thorofare Capital, Inc., is an affiliate of alternative investment manager Thorofare LLC, is a national, vertical-integrated commercial real estate debt fund manager.
The bridge loan was originated by Igor Zhizhin, the President and Founder of ASC.