A past client of ours was in a 1031 exchange and the upleg asset that his agents located for him was one that we were familiar with since we had previously financed it for the seller when he had purchased. As a matter of fact, on this transaction we had a past client buyer, a past client seller and repeat top real estate Brokers that we consistently work with throughout the year. It was like a big family reunion LOL.
The asset was underperforming-rents were low, there had been a fire in one of the units which had to be completely renovated, and the sellers they were splitting their partnership and just weren't really on top of the management of the building. As a result of all of this we could not place the borrower into traditional bank financing, and our borrower only had a certain amount of funds to work with in his downpayment.
ALB structured a bridge loan for the borrower allowing them to obtain 75% LTV for a 12-month interest only loan. This enables the buyer to complete the purchase then immediately after closing work on stabilization and making improvements to the property so that we can then later refinance out into normal bank financing. Knowing what to do & getting the job done that's what we do here at ALB Commercial Capital.