|DATE OF FUNDING||4-28-2015|
|GROSS LOAN AMOUNT||$1,200,000|
|LOAN TO VALUE||68%|
|NET NOTE RATE||10.95%|
|TERM OF INVESTMENT||18 Months with 6-month Lockout|
$1,200,000 FOR THE REHABILITATION
OF A MULTIFAMILY APARTMENT COMPLEX IN JACKSON, MS
The sponsor sought $1,200,000 for the refinance and rehabilitation of a 50,834 sf two story 74-unit apartment complex in Jackson, MS. The subject property is located across the street from Millsaps College, a privately supported national liberal arts college founded by members of the Methodist Church in 1890.
The borrower is a firefighter with excellent credit and prior apartment experience, who acquired the property from his father in mid-2014. Since then the borrower has been steadily increasing rents to market rates. $385,000 of the proceeds will be used to re-roof and re-paint the entire exterior of the property. The property has shown a consistent high occupancy rate of 95%.
Borrower’s exit strategy is to seek conventional bank financing within the next 6-12 months after repairs and further rental increases.