Bridge Loan Affordable Rentals/300 Unit SRO – Chicago, Illinois
Overview:
Sherpa Capital Group worked closely with the client to gather and approve appropriate documentation while addressing title issues to secure a clear title commitment. We provided a first mortgage loan to acquire the property within the tight timeframe.
Outcome:
The loan closed successfully before Thanksgiving, enabling the client to move forward with their plans. The exit strategy involves updating the property and securing a construction loan with a local lender within six months.
- Client: An experienced real estate operator specializing in affordable multi-family rentals.
- Location: Austin neighborhood, Chicago, IL.
- Asset: A 300-unit Single Room Occupancy (SRO) property, formerly a YMCA, featuring two basketball gyms, pool and meeting rooms.
- Purpose: Acquisition loan to stabilize the asset after years of neglect by previous ownership.
- Tight deadline: Close within 14 days or less.
- Unique asset: Traditional Banks unable to execute due to timing and existing operational and physical challenges at property.
- Title issues: Over 6 liens on title including banking, mechanical and government liens. Two open court cases including a Foreclosure and City of Chicago Building Violation Court Case and large past due water bill
Sherpa Capital Group worked closely with the client to gather and approve appropriate documentation while addressing title issues to secure a clear title commitment. We provided a first mortgage loan to acquire the property within the tight timeframe.
Outcome:
The loan closed successfully before Thanksgiving, enabling the client to move forward with their plans. The exit strategy involves updating the property and securing a construction loan with a local lender within six months.
