iBorrow, a nationwide private direct lender for commercial real estate, has provided a $17.38 million refinance loan on two mid-renovation multifamily communities located in Southern California.
The bridge loan will be used to refinance the borrower’s existing debt, while also providing the additional proceeds needed to complete full unit renovations and capex work, then lease up the asset to stabilization, says Brian Good, CEO of iBorrow.
“We were able to provide a loan that enabled the borrower to complete the renovations of two exceptionally well-located multifamily properties in Southern California while preserving equity,” explains Good. “We’re highly confident in the borrower’s business plan to bring in-demand upgraded space to the market, which experienced rental rate increases of nearly 20 percent since 2020.”
Good adds that iBorrow was able to meet the borrower’s unique requirements for fast, reliable financing to fund the accretive property renovations.
“Our client’s previous loan included two additional properties that did not have any release provisions structured, so two loans were required to refinance all four assets,” explains Good. “Ultimately, iBorrow served the borrower’s need for a flexible lending solution, working within a varying timeline to close our loan simultaneously with the loan for the two other properties. In this ever-changing interest rate environment, it is important for borrowers to secure a true funding partner to help navigate the volatile market and provide funding to acquire or refinance these opportunities.”
The multifamily properties include a 76 percent leased 50-unit, 44 percent renovated asset in Lawndale, California and a fully vacant, 18-unit property in Oceanside, California.