Red Oak Capital Holdings, LLC has provided a $4 million bridge loan for the Bon Air Apartments, a multifamily complex located at 21 West 16th Street in Indianapolis, Indiana. The funds will be used to pay off an existing loan and complete the renovation of the Marion County property.
The interest-only loan carries a note rate of 11.50% and a two-year term with two 6-month extension options. The non-recourse debt represents 54.4% of the property’s estimated stabilized value of $7.35 million.
Red Oak’s Regional Manager-Midwest Stratos Athanassiades, Senior Underwriter Thomas Gorski, and Senior Loan Administrator Jesus Martinez originated and underwrote the debt under the firm’s Opportunistic Bridge Loan Program. The transaction was brought to Red Oak by Paul Meyer of Bristol Capital.
The borrower, 21 West QOZ, LLC, plans to use the funds for the gut renovation of the three existing buildings into a high-end, luxury multifamily offering, followed by a new ground-up building on an adjacent vacant parcel.
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