Lument Closes $16 Million Bridge Loan for the Acquisition and Renovation of Texas Multifamily Community
New York, NY — Lument recently announced the closing of a $16 million proprietary bridge loan to acquire and renovate The Palazzo, an 92-unit garden-style apartment community in San Antonio, Texas. Lument’s Phil Frasca led the transaction.
“It was a pleasure to work with this client to secure the funds to acquire and complete capital improvements on this multi-building complex,” said Frasca. “Using this funding, the borrower is able to construct a concise plan to add value to this 2000s vintage property and transform it into a modern 2020s apartment community.”
The $16 million bridge loan includes $1.3 million for renovations and features a variable interest rate and a three-year term, with two 12-month extension options. Planned improvements include upgrades to the property’s exterior and common areas, as well as repairs to its parking lot, swimming pool, and clubhouse.
The Palazzo was originally constructed as condominiums in 2008, but due to the poor economy at the time, only eight out of 100 units were sold upon completion. The remaining 92 units were converted into rentals and consist of 20 one-bedrooms, 48 two-bedrooms, and 24 three-bedroom floor plans. The community is made up of 10 buildings situated on 4.3 acres. Its amenities include a leasing office, fitness center, business center, and dog park.
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.