BridgeInvest Funds $5.2 MM Miami Beach Short-Term Rental Conversion
1st Priority Mortgage Loan
BridgeInvest recently financed a $5.2 MM acquisition and rehab loan for a 12-unit apartment building on Collins Ave in Miami Beach, FL. The borrower plans to convert the existing, over-sized units into 18 short-term rentals. The property is located steps from the beach in one of the premier tourist destination submarkets of Miami. The loan was arranged by Eastern Union Funding.
Transaction Highlights
Unique Business Plan.
The borrower plans to operate the property as short-term rentals. BridgeInvest was able to underwrite the transaction to the borrower’s needs despite the limited information available on the asset class.
Value-Add Upside.
The loan includes a capital improvement reserve for the total gut renovation of the property with a revised layout to maximize efficiency for the new use.
Historic Designation.
Built in 1941, the property benefits from its historical significance, which may necessitate certain design features. The facility allowed for various possibilities pending final planning board approval.
