Los Angeles, CA

$680,000

Multifamily

Commercial Property Value Add

10/29/2020
Transaction by
S&L Capital Group
S&L Capital Group provided a 24 month acquisition bridge loan for its borrower acquiring a 9 unit, soft story, multifamily asset in Los Angeles, CA. Our borrower was up against all cash offers and came to us needing to match the 10 day close window of the all cash offers. We issued a preapproval letter for the purchase of which the listing Broker called us on. After speaking with Corey Siegel, the listing Broker put our borrower's offer in the top 3. In order to win the deal, our borrower upped his EMD to $150,000 and waived all contingencies. Before making the move he asked "how confident we were in our quote?" With out hesitation we said "lock it up." Hurdles: Softstory Multifamily Below Market Rents Nonrefundable EMD ($150,000) Sub 10 day close request No appraisal request No interest guaranty request Solution: Before his offer was accepted, the team at S&L Capital Group was able to confidently establish value and verify the required soft story retrofit had been completed. For multifamily in LA County, these are 2 potential bottlenecks that could greatly effect a loan amount. Waiting until being submitted to underwriting to verify could have potentially put the deal at risk for our borrower. Once the deal was locked up, we scheduled a quick walkthrough to verify condition and waived our appraisal requirement. Once funded, the listing Broker summed up deal in 1 sentence, "That was way easier than I expected."