148-unit, gated-entry, multifamily complex with a pool, two laundry facilities, and outdoor recreation area. The property mix consists of one and two bedroom units.
HRC has arranged a $14.5 million in non-recourse acquisition/bridge financing, representing 80% of total cost. The interest rate on the initial funding was fixed at a spread over the 5-year treasury. Reserve accounts were established for renovation and capital improvement costs; as reserve funds are drawn they will accrue interest at a competitive spread over LIBOR. The loan features an attractive prepayment option that allows the sponsor to sell or refinance after 24 months with minimal exit costs.