Love Funding closed two bridge loans totaling $15.2 million for the acquisition and renovation of two market-rate apartment communities in Clayton County, Georgia. The properties involved are Southlake Cove Apartments, a 346-unit community in Jonesboro, and Vineyard Point Apartments, a 108-unit community in Riverdale. They are being acquired by ownership groups led by Paul D. McMaster, a property management and investment professional with nearly three decades of experience.
The bridge financing was secured by Love Funding Senior Vice President Jonathan Camps, with funding provided by Love Funding’s parent company, Midland States Bank. Going directly through the U.S. Department of Housing and Urban Development (HUD) would have delayed the acquisition and extended it beyond the seller’s timeframe. The bridge loan enabled the buyers to act quickly, and needed repairs identified through the underwriting will help streamline the process for obtaining permanent HUD financing. Love Funding began underwriting the HUD applications immediately upon the closing the bridge loans.
“We apply HUD’s capital needs and environmental guidelines to every bridge loan we do so there aren’t any surprises when we do the HUD takeout,” Camps said. “The financing sets aside ample funds to tackle the critical repairs identified and escrows the remainder so it can be transferred over when the HUD loans close.”
Love Funding introduced the bridge loan platform in May 2015 as a means for providing interim funding support for acquisition and refinancing applications on HUD multifamily and healthcare loans. The platform was later expanded to include tax credit equity bridge loans, and construction/mini-perm financing for multifamily and healthcare development. To date, Love Funding has financed more than $153 million in bridge loans, with another $220 million in loans in the pipeline.
For more information, contact Jonathan Camps at (202) 887-1825.