Purchase & Rehab Bridge Loan for Multifamily in Evansville, IN

Funded by Lima One Capital


Deal Details

Private Loan Type

Commercial Property Value Add

Approx. Funding Date


Property Type
Property City


Property State


Loan Term (months)


Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price


Source of Borrower's Contribution


Renovation Budget


Loan-to-After-Repair Value


Renovation Project Scope

Heavy Rehab

Property Neighborhood


Location Type


Property Condition


Occupancy at Closing


Number of Units


Borrower's Plan

Rehab and Rent

Exit Strategy


Deal Highlights

Two property multifamily deal - Kentucky and Indiana.
Class C properties rehabbed to Class B workforce-type housing.
Bridge financing covered both the purchase and rehab.
Non-recourse loan.

Deal Summary

The Opportunity

A commercial real estate broker introduced Lima One to a client who wanted to purchase and rehab two multifamily properties in Evansville, Indiana. These Class C properties, both built in 1950, needed significant rehab in order to fulfill the investor’s strategy to reposition them as Class B workforce-type housing.

To achieve this, the investor needed flexible bridge financing that covered both the purchase price and the rehab budget. The investor wanted to finance these two properties, along with one across the Ohio River in the adjacent Owensboro, Kentucky, market at the same time.

The Solution

Lima One’s multifamily value-add rehab bridge loan was the perfect solution for this real estate investment strategy. The borrower was able to close a single, $13 million loan to purchase three apartment complexes across two states. The 24-month interest-only loan provided the funds needed to purchase the properties plus construction funds to adequately rehab the investments.

The borrower was able to secure a non-recourse loan and did not have to pay interest on undrawn rehab funds, providing the best overall financing solution for the properties. Through this strategy, the investor will increase the overall value of the three properties to $22 million, while providing 240 quality workforce housing units across Indiana and Kentucky markets.

The subject property was in poor condition and tenant-occupied at closing. The Borrower plans to continue leasing the units at the market and eventually refinance as an exit strategy. This multifamily property bridge loan was funded in April 2022.

Funded By

Lima One Capital

The Nation's Premier Lender for Real Estate Investors

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