|DATE OF FUNDING||11/22/13|
|GROSS LOAN AMOUNT||$1,500,000|
|LOAN TO VALUE||50%|
|NET NOTE RATE||7.50%|
|DEBT COVERAGE RATE||2.48x|
$1,500,000 FOR THE PURCHASE OF A BANK OWNED APARTMENT COMPLEX IN JACKSONVILLE, FL
The subject property is a 112-unit, Class C Apartment complex known as the Cimarron Apartments located at 830 Arlington Drive, Jacksonville, FL 32211. The property was built in 1966 and is comprised of 10 buildings on 4.4 acres with almost 96,000 square feet of rentable space. The collateral is brick construction with pitched roofs and is individually metered for electricity.
The borrower has established experience in acquiring bank owned apartment complexes and repositioning them for sale at a profit. Currently, the borrower manages more than 20,000 tenant units.
As noted above, the property has a current value of $3,000,000 and a debt service coverage ratio of 2.48x, based on the current rent roll income and a 55% expense ratio. This loan is non-recourse to the borrower, subject to customary recourse carve-outs.