GFS closes $9,000,000 purchase loan
Gomberg Financial Services is pleased to announce that we have arranged a $9,000,000, 75% LTV purchase loan for a 355-unit luxury high-rise apartment complex located in Fort Wayne IN. The complex is comprised of two 14-story towers situated above an underground parking garage. The 1-year bridge loan is fixed at the Prime rate. After the one year period the loan converts into a permanent Fannie Mae DUS loan.
The financing for the property had to be revised mid-stream due to an explosion in the underground parking garage, caused by a tenant dispute. The explosion caused approximately $2.5M in structural damage to the buildings. In the aftermath the occupancy level fell from 95% to around 75%. Because of the resulting high vacancy rate, the permanent financing had to be changed to a bridge loan for a year to allow time for the occupancy rate to return to its normal level.
The borrower, VTT Properties, LLC of Framingham MA, now owns and manages over 900 residential units. Gomberg Financial Services has now arranged over $55,000,000 in commercial real estate mortgages for VTT Properties, LLC.
Three Rivers Apartments, Fort Wayne IN