Fident Capital secured $29.0MM of bridge financing on a recently constructed mixed-use property with 52 apartments and ground floor retail. Loan proceeds funded the conversion of a multifamily asset, located only three blocks from the Ocean at the iconic Oceanside pier, into for-sale condos. The lender, a private debt fund based out of New York, provided non-recourse financing that allowed a cash-neutral refinance of the existing debt.
Project Highlights:
•Optionality from the original condo specifications and tentative map allowed for an easy pivot from, and back to, a for-sale strategy.
•Experienced lender partner with deep expertise in all aspects residential housing, including conversions, offered pragmatic solutions reserve and incentive structures.
•Well-built mixed-use project in idyllic location three blocks from the beach.
Non-recourse, cash neutral financing which capitalized all necessary reserves and conversion costs.
Challenges:
•Complicated mixed-use wrap product surrounded a public-private parking garage with bifurcated access for residents.
•Navigating perceived pressure on potential condo buyers from a rising interest rate environment.
•Considerable cash flow analysis was required to plan for HOA, tax, operating, interest, and incentive plan reserves as revenue declined upon vacating rental units in order to sell them.
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