New York, NY — Lument has closed a $17.9 million proprietary bridge loan to facilitate the acquisition and renovation of Parks at Colonnade, a 211-unit garden-style multifamily apartment community in San Antonio, Texas. Phil Frasca led the transaction for Lument.
“Lument’s proprietary bridge loan proved to be an ideal solution for this strategic acquisition, as it met the sponsor’s desire for a 75% loan-to-purchase term and allowed for 100% of CapEx financing to be used on renovations, all while keeping investor returns high in a very competitive market,” said Frasca.
The non-recourse bridge loan has a low interest rate and three-year term, all of which is interest only, and two one-year extensions. In addition to facilitating the acquisition, the closing provides approximately $1.8 million for renovations that will be used to upgrade infrastructure, exteriors and amenities, and unit interiors. As part of the renovations, 100% of the unit interiors will be updated and the community will be renamed and rebranded to appeal to a tenant base seeking modern yet affordable housing.
Originally constructed in 1970 and acquired by the seller in 2018, Parks at Colonnade consists of 31 two-story low-rise apartment buildings housing 18 studio units, 86 one-bedroom units, 94 two-bedroom units, and 13 three-bedroom units. Notable property amenities include a clubhouse, two swimming pools, carports, and a dog park.
About Lument
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.