PRESS ROOMNEWS RELEASE
Inland Mortgage Capital’s Small-Balance Lending Program Closes Nearly $20 Million in LoansJuly 09, 2019
Oak Brook, Ill. – Inland Mortgage Capital, LLC (“IMC”), a private lender specializing in intermediate-term mortgages for value-add commercial real estate, today announced that it closed four non-recourse bridge loans, totaling $19.6 million, in the last 45 days under its small-balance lending program.
The loans funded projects for four individual assets in Georgia and California, which included financing for two office and two multifamily properties.
The office projects included acquisition and repositioning financing for a well-occupied office building in San Diego in need of a refresh. With the monies for capital improvements and leasing, the Borrower should be able to execute its business plan to increase income and value. The second office loan was an acquisition loan secured by an established medical office building in Douglasville, Georgia. The primary tenant had recently expanded, and its lease was set to expire in less than three years, but the Borrower was confident that it would be able to extend the term.
The multifamily financings will fund the acquisition and repositioning of two projects in Southern California. The first loan was for a two-story, 18-unit, 100 percent occupied multifamily development in Los Angeles. The second loan financed a 24-unit residential complex in Garden Grove, California, with a three-time repeat Borrower. Both projects featured similar characteristics, in which, despite being well occupied, both properties suffer from deferred maintenance and need significant upgrades to allow the Borrowers to increase the value of the respective properties. The Borrowers are planning to use the loan proceeds to acquire the properties as well as for future capital improvements, and both loans were structured with future funding capacity for the improvements to be performed.
IMC flexibly structured around the various risks associated with each loan and provided each Borrower with a non-recourse loan that was prepayable at any time without premiums.
“Inland Mortgage Capital saw many positive aspects to these deals, primarily strong demographics, a history of solid occupancy levels at each property and desirable locations in high performing markets,” said Art Rendak, president of IMC. “It is evident there is a sustainable need for private debt capital for smaller commercial real estate projects. IMC specializes in financing value-add opportunities, where its Borrowers can benefit from flexible non-recourse debt to maximize the value of their investment with the ability to prepay without premium at any time if they wish to refinance or sell their assets.”
Inland Mortgage Capital provides financing for commercial real estate nationwide, concentrating on small-balance projects from $3 to $15 million. IMC’s program benefits its borrowers in that its loans are non-recourse to the sponsors. Also, IMC does not charge interest on future loan advances until they are disbursed.
About Inland Mortgage Capital, LLC
Inland Mortgage Capital, LLC is an experienced private lender specializing in intermediate-term mortgages for value-added commercial real estate in need of bridge financing. We provide non-recourse loans targeted for projects with opportunistic characteristics. For more information, please visit www.inlandmtg.com.