Refinance Bridge Loan for Student Housing Portfolio in Lima, Ohio

Avatar Financial Group, a direct private money lending firm, funded a $30M 1st lien position bridge loan to refinance a portfolio of 4 student housing properties across three states – Missouri, Ohio, and Indiana. The Borrower is a large nationwide developer of student housing, and their properties were set to be refinanced in a year-end securitization. They are new construction and did not achieve the occupancy requirement of 90% by the securitization date and were dropped. With the loans coming due at year-end, the Borrower was facing a possible default situation. Avatar was able to underwrite and fund the transaction within 30 days and meet the year-end closing deadline. Our interest rate was 8.25% for a term of 12 months and loan-to-value of 70%. The deal was brought to us by a mortgage broker to whom we paid a commission of $450,000. This CRE bridge loan was funded in December 2019.