East Orange, NJ
W Financial closed a 9%, $4,000,000 first mortgage bridge loan secured by two apartment buildings with a total of 124 units in East Orange, NJ. The loan has a three-year term, accommodated a time-of-the-essence closing, and was underwritten based on a loan-to-value ratio of 73%. W Financial’s loan includes a renovation escrow of $950,000, which will fund the remaining work necessary to upgrade the units and increase the NOI. The borrower contributed more than $3,300,000 of equity at closing and plans to complete renovations and improvements, and then refinance with a conventional lender. We have been seeing more opportunities like this one where the deal started as a note purchase from a bank seeking to clear its balance sheet, where the principals were able to successfully buy the fee interest prior to closing.