Bridge Loan
Bridge Loan for Multifamily Purchase in Honolulu, Hawaii
- Loan Amount
- $390,000
- Loan-to-Purchase Price
- 60%
- Interest-Only Term
- 12 Months
- Private Loan Type
- Bridge Loan
- Approx. Funding Date
- May 9, 2024
- Property Type
- Multifamily
Deal Summary
Myers Capital Hawaii, a direct private lender, funded a $390,000 1st lien position bridge loan for the acquisition of a 9-unit leasehold multifamily property in Honolulu, HI. We funded 60% of the $650,000 purchase price while the Borrower contributed 40% at closing using equity in another property. This project represents a unique opportunity to acquire the improvements of a multifamily property in highly populated urban Honolulu with historically stable in-place cash flow. The property offers upside revenue potential from increasing rental rates driven by growing demand, low new inventory, and significant barriers to new development. The building is approximately 7,170 square feet. The Borrower had excellent credit and plans to continue leasing the property long-term. They plan on selling another piece of real estate and will use the proceeds to pay off our loan within the 12-month term. The loan’s interest rate was 13.99%. This multifamily bridge loan was funded in May 2024.
Deal Highlights
- Borrower purchased a 9-unit leasehold multifamily property in Honolulu, Hawaii.
- The property offers upside revenue potential from increasing rental rates driven by growing demand.
- Borrower is an experienced real estate investor who owns a real estate brokerage.
- Borrower is selling another piece of real estate and will use the proceeds to pay off our loan.
Property & Loan Details
- Property City
- Honolulu
- Property State
- HI
- Loan Term (months)
- 12
- Lien Type
- 1st Mortgage
- Payment Type
- Interest Only
- Purchase Price
- $650,000
- Borrower's Contribution to Purchase
- 40%
- Source of Borrower's Contribution
- Equity in Another Property
- Location Type
- Urban
- Property Condition
- Good
- Occupancy at Closing
- Tenant-Occupied
- Number of Units
- 9
- Building Square Footage
- 7,170
- Borrower's Plan
- Long-Term Rental
- Exit Strategy
- Pay Down
- Borrower Credit Rating
- Excellent
- Interest Rate
- 13.99%
Loan Originator
Reed Myers
Principal
Reed is also Principal of Myers Capital, an award-winning, privately-owned residential and commercial mortgage banking company and direct private lender based in Honolulu, Hawaii. As a second-generation family business owner, Reed is personally involved in over $2 billion in loan originations, helping thousands of clients throughout the country. He holds active mortgage loan origination licenses in Hawaii and multiple states. He is also an experienced real estate investor throughout Hawaii and the mainland. Myers Capital provides efficient mortgage lending and real estate advisory services in 42 states.
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