Refinance of an 80 Unit Multi-family Property in Lynchburg, VA
Additionally Secured by a Recently Purchased Warehouse Property in Lynchburg
Paradigm Capital, a nation-wide, private commercial real estate bridge lending firm, is pleased to announce that it has funded a $2,200,000.00 1st mortgage, for the refinance of a 76,000 SF, 80 unit multi-family Property in Lynchburg, VA. The Property is currently undergoing a significant renovation, during which our Borrower has contributed over $160K, out of pocket, toward the upgrades to-date. A portion of Paradigm’s loan will be used to complete the renovation work. Currently, there are about 20 units down which are scheduled to be fully renovated and leased, but even at 75% occupancy the Property is positively cash flowing. Our Borrower is completing and leasing up units at a rate of approximately 5 units per month and we expect the property to be stabilized this year.
Paradigm’s loan is additionally secured by a 15,000 SF vacant warehouse, slated for renovation and conversation into 30 residential rental units. This Property is located in one of the four recognized historic districts in the downtown residential area. Since 2002, downtown Lynchburg has experienced significant revitalization, with hundreds of new loft apartments created through adaptive reuse of historic warehouses and mills. In the past 10 years downtown has attracted private investments of more than $110 million and business activity increased by 205% from 2004 to 2014. Notable projects currently underway in downtown include the $25 million Hilton Curio branded Virginian Hotel restoration project, $16.6 million restoration of the Academy Center of the Arts, and $4.6 million expansion of Amazement Square Children's Museum.
David Kushner, the President of Paradigm Credit Corporation offered this about the transaction, “Our Borrower was approaching maturity on his existing financing, which his agency lender would not extend, given the current occupancy of the Property, this precipitated his need for our loan. Paradigm was impressed with the revitalization of the city and our Borrower’s commitment and plans for both properties. Paradigm’s loan represents 62.9% of the properties’ underwritten value and Paradigm was able to close this transaction in 30 business days from origination.”