Purchase Bridge Loan for Multifamily Property in Los Angeles, California

Conventus LLC, a direct private mortgage lender, funded a $595,000 1st lien position bridge loan for the acquisition of a 5-unit multifamily property in the Jefferson Park neighborhood of Los Angeles, CA. The Borrower/Sponsor is an experienced investment group that owns other multifamily properties in the same area of L.A. The purchase price was $850,000. The Borrower put down $255,000 in cash, and Conventus funded the other 70% of the purchase. This acquisition represents a repositioning opportunity by purchasing an add-value property in an improving neighborhood with a high rental upside. The Borrower plans to immediately renovate three of the five vacant units. In addition, The building’s exterior will be painted, new lights and fixtures hung, and the property will be landscaped. After the units are rented, and the building’s exterior is complete, the property will be refinanced with a conventional bank loan within the 12-month loan term. The Borrower found Conventus on PrivateLenderLink.com, and the loan was funded one week after the initial inquiry. The property is located in Jefferson Park. It is just South of Jefferson Boulevard and slightly East of Crenshaw Boulevard in Los Angeles. The property’s location will benefit greatly from its close proximity to the Crenshaw Metro Hub. Large-scale mixed-use developments are currently being constructed nearby on Metro-owned property. The Metro Line should increase the rate at which the neighborhood gentrifies, as well as appeal to prospective tenants who rely on the train for transportation. All of these factors will contribute to an increased value of the property in the near future. This purchase bridge loan was funded in September 2016.