Refinance Bridge Loan for Multifamily Value-Add Project in Columbus, Ohio

Gelt Financial, a direct CRE private lender based in South Florida, funded a $3M bridge loan secured by a multifamily property in Columbus, OH. The Borrower owned the property in the mid-2000s and lost it to foreclosure in 2009. However, the foreclosure was being litigated for the past 12 years, so no bank or private lender would consider lending to the Borrower. Gelt provided a 1st mortgage to buy the debt and buy out the partners. Our loan included a $1M hold-back to complete a major renovation on one of the buildings which caught fire in 2020. We estimate the completed value will be around $7M to $8M after the rehab project is completed. We did not require a formal appraisal but did require a 3rd party construction estimate. The Borrower plans to refinance with a long-term loan after completion. This bridge loan was funded in March 2021.