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High leverage, non-recourse Lending, up to 90% of purchase price.
ATLANTA, GA, November 30, 2018 /24-7PressRelease/ -- Trinity Street Capital Partners (TSCP), a full service real estate investment bank, announces the origination of a $27MM, 85% loan-to-cost, bridge loan for the acquisition of a 225 unit, garden style multifamily complex located in Atlanta, GA.. The non-recourse, bridge loan had a 3 year term, with 2/ 1 year extension options.
The subject's improvements are well located, just minutes from the I-20/I-285 interchange and offers excellent drive-times to many of Atlanta's top employment centers. Other benefits to the location include its proximity to the Camp Creek Marketplace, Hartsfield-Jackson International Airport, Downtown and Midtown. The 1.2MM SF Camp Creek Marketplace, one of the highest grossing retail centers in Atlanta and the premier retail destination for Atlanta's Southwest side. Completed in 2006, the marketplace is home to national retailers like Lowes and Target and supports more than 2,000 jobs. The development of the marketplace has been a catalyst for high-end residential development, creating an opportunity for the subject to garner rents set by the Class A assets situated around Camp Creek.
The property was originally developed as a low income tax credit project and its existing 15 yr compliance period will end in February 2019. Trinity Street has a long track record for underwriting all types of tax credit transactions, including Federal and State Historic tax credits, New Market tax credits, Low Income tax credits (LITC) and Brownfield credits. In the case of the subject property, which was originally a LITC project, historical expenses were exceptionally high, as developers' distributions are restricted for LITC properties, they use related parties to over bill the project and extract funds in this manner. TSCP, through intimate market knowledge and underwriting expertise, was able to re-underwrite historical expenses and project forward looking statements, creating a market based stabilized cash flow and allowing for a high leverage loan of 85% of cost.
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