Red Oak Capital Holdings provided a $2.3-million bridge loan to the owner of the Templecliff Apartments in Southeast Dallas. The loan was structured with a note rate of 10.00% and a 12-month term with two six-month renewal options. The borrower will use the funds to retire an existing mortgage and implement a capital improvement program to increase the property’s value and appeal to prospective buyers.

Templecliff Apartments consists of a 21,630-square-foot garden-style complex with parking for 53 cars and 26 one- and two-bedroom units ranging from 750 to 1,125 square feet. Situated on a 1.2-acre site at 1234 Templecliff Dr. in Southeast Dallas, the wood-frame and siding structure was built in 1961 and last renovated in 2021.

The sponsor is a Dallas native with an extensive background in multifamily and value-add renovations. He launched Jernigan Capital Group in 2017 to specialize in the acquisition, analysis, and operations of large apartment communities in the Southeast. The firm has an in-house property management team and operates a portfolio of 42 apartments in the Dallas/Fort Worth area. After refinancing the existing mortgage and completing the capital improvements—specifically, upgrading buildings’ plumbing system, thus reducing utility expenses—the borrower will exit the Red Oak loan with permanent financing via its existing relationship with Freddie Mac or possibly sell the asset.