LOS ANGELES, Calif. – Crescent Lenders, a hard money lender in Los Angeles, has successfully funded a $1,625,000 first trust deed bridge loan for the acquisition of a 16-unit multi-family apartment building located in Los Angeles.
Boasting 11,386 square feet of multi-family space across 16 total units, the property was purchased for $2,500,000 by International Investments Trading and Consulting, Inc., under the leadership of a highly seasoned investment team.
The subject property consists of 15 units plus one studio, totaling 11,386 square feet. The borrower is an International Investments Trading and Consulting firm led by a seasoned investor, which purchased the property for $2,500,000.
Crescent Lenders provided the purchase financing with a conservative 65% loan-to-value (LTV) ratio, ensuring a strong equity position from the outset.
The 12-month private money loan features a 10.00% interest-only fixed rate with a three-month prepayment penalty.
Strategic Value-Add Opportunity
The property currently generates a monthly gross rent of $24,863, which comfortably covers the monthly debt service of $13,541. However, the existing rents are significantly below market value for the Los Angeles area.
The borrower’s exit strategy involves a ‘cash-for-keys’ transition: negotiating with current tenants to vacate in exchange for a relocation payment, allowing units to be renovated and re-leased at market rates.
Once the property’s income is stabilized, the borrower intends to transition into long-term conventional financing.
Confidence in Experience
Crescent Lenders’ decision to fund the deal was driven by both the quality of the collateral and the caliber of the borrower. The borrower brings 35 years of real estate experience to the project, with a net worth exceeding $10 million, largely concentrated in real estate holdings.
“This transaction is a perfect example of what we do best,” said Mario Padilla, CEO of Crescent Lenders. “We were able to provide fast, reliable capital for a complex multi-family play. With a 65% LTV and a borrower who has nearly four decades of experience, we have full confidence in the success of this value-add project.”
You can find out more about their loan programs on their website.
