Purchase Bridge Loan for Multifamily Property in Los Angeles, California

Conventus LLC, a direct private mortgage lender, funded a $546,000 1st lien position bridge loan for the acquisition of a 5-unit multifamily property in the West Adams neighborhood of Los Angeles, CA. The Borrower/Sponsor is an experienced investment group which owns other multifamily properties in the same area of L.A. The purchase price was $850,000. The Borrower put down $304,000 in cash, and Conventus funded the other 64% of the purchase. This acquisition represents a value-add opportunity by purchasing an property in an improving Los Angeles neighborhood with high rental upside. The property is a two-story Craftsman style building built in 1910, approximately 5,000 square feet on a 6,600 square foot lot. The Sponsor plans to immediately renovate the vacant units. In addition, the building’s exterior will be painted, new lights and fixtures hung, and the property will be landscaped. After the renovation project is completed and the vacant units are rented, the property will be either sold or refinanced with a conventional bank loan within the 1-year loan term. This is the second loan Conventus has funded for the Investors. This purchase bridge loan was funded in September 2016.