RRA Capital, a direct private lending firm, funded a $5.2M bridge loan for the purchase of an apartment complex in Phoenix, AZ.
Built in 1985, the property is 100% occupied and consists of 44 units spread across 5, two-story buildings on 0.92 acres. All units at the subject property are 2-bedrooms / 2-bathrooms and 885 square feet.
The sponsor plans to immediately undertake a considerable renovation program to improve both unit interiors and exteriors to make the necessary improvements to cycle rents to market.
The loan includes a capital improvement holdback facility to cover the costs of the scheduled renovations and upgrades as leases roll.
The loan term is 36-month with two, 6-month extension options. As with most of RRA's loans, no personal guaranty was required. The property is located close to RRA's main office, making it easy for us to do a site visit. This bridge loan was funded in January 2021.
