Robb Capital Closes $7.375 Million Loan for Mountain Creek View Apartments & Highland Hills Apartments
Date: On December 21st, 2015, Robb Capital proudly announced the successful closure of a $7,375,000 loan, representing two multifamily properties cross collateralized as one loan, located in the vibrant Dallas, TX Metro Area.
Property Details:
– Property Names: Mountain Creek View Apartments and Highland Hills Apartments (cross collateralized as one loan).
– Address 1: Mountain Creek View Apartments, 5821 Bonnie View Road, Dallas, TX, 75241
– Address 2: Highland Hills Apartments, 5722 Highland Hills Drive, Dallas, TX, 75241
Loan Details:
– Loan Amount: The financing package secures an essential $7,375,000, supporting the acquisition and development of these two multifamily properties in the Dallas Metro Area.
– Loan to Value (LTV): The LTV ratio stands at a favorable 70%, reflecting a well-structured financing arrangement that offers valuable terms.
Negatives:
Old HUD Restriction: Initially, an old HUD restriction was in place, necessitating engagement with HUD legal counsel to remove and record a cloudy title on the new acquisition.
Title Clearing: Furthermore, a local Texas attorney was engaged to request a quitclaim, providing clear title insurance and ownership for the properties.
Previous Mismanagement: The properties had a history of mismanagement under a previous landlord, requiring attention to restore them to their full potential.
Positives:
– HUD Restriction Resolution: All HUD restrictions were successfully cleared and recorded, ensuring compliance and clarity in ownership.
– Cost Efficiencies: The properties benefited from cost efficiencies as they were strategically situated near one another.
– Repair Funds: A substantial $200,000 was allocated for immediate repairs, with an additional $600,000 to be released in six months for the completion of long-term repair projects.
– Cash Out Opportunity: Mountain Creek View Apartments presented the opportunity for 100% cash out after 10+ months, providing valuable liquidity for the investor.
– Upside Potential: With new management in place and a focus on higher occupancy rates, both properties held significant upside potential in terms of growth and profitability.
Robb Capital is delighted to have successfully closed this complex financing deal, which included addressing various challenges and capitalizing on the numerous positive aspects of the investment. This financing arrangement paves the way for the growth and transformation of Mountain Creek View Apartments and Highland Hills Apartments in the Dallas Metro Area, reinforcing their role as valuable assets in the local real estate landscape.
