Edgewood Capital Advisors financed the first mortgage bridge loan of $3.85 million for an apartment complex in Jacksonville, Fla.
The two-year loan provides 70% of the total capitalization including property acquisition, capital improvements, operating reserve and transaction costs for the 186-unit building.
The property, known as Eagles Pointe, consists of 24 two-story garden-style buildings containing a mixture of one-, two- and three-bedroom units. The borrower intends to improve performance at the 11.7-acre property that was built in 1972 through active onsite property management and the implementation of a $1 million renovation program.
Eagles Pointe is the fifth residential complex acquired by the borrower in the past 16 months. Of the five acquisitions, the Southport, Conn.-based private equity firm funded three, with this property being the first in Florida.
The firm said its bridge loan program is designed to help existing borrowers or investors acquire commercial real estate assets at a discount that is in need of re-tenanting and significant capital improvements.
“Edgewood specializes in providing financing for investments that are not available for conventional debt,” said Jonathan Levirne, managing director and partner of Edgewood who is in charge of new loan originations and acquisitions and business development. “We offer distinct advantages over our competitors with the ability to provide non-recourse financing and to close within a short two weeks.”