BridgeInvest Funds $7.0 MM Loan for Former Hotel Converted to Apartments
1st Priority Deed of Trust
Southeast focused bridge lender, BridgeInvest, recently closed a $7.0 MM, first-priority loan secured by The Remington Apartments, a 185-unit multifamily complex in Orlando, FL. The loan allowed the sponsor to cash out a portion of the equity created and invest in new opportunities, despite the fact that the property remains in lease-up. The property, most recently known as the Palms Hotel, was recently gut-renovated by the owner after years of vacancy. Remington benefits from a convenient location off of the FL Turnpike in the rapidly expanding Kissimmee submarket of Orlando. The asset represents the latest multifamily repositioning project throughout Orlando by the sponsor, Ken Cornell, a leading local, private investor.
BridgeInvest was able to accommodate a short closing period in order for the borrower to quickly refinance and move forward with other investments.
The loan was structured to include an initial advance of $5.5 MM followed by three future advances (‘earn-outs’) as certain occupancy hurdles are reached. These earn-outs will benefit the borrower with immediate equity recapture as they add value through lease-up.
BridgeInvest was able to see through the unique aspects of the value to underwrite its intrinsic value. In addition to featuring an unusual unit mix of nearly all studio apartments, the property was also age-restricted to tenants above the age of 55.