Opportunity
The borrower, through their intermediary, came to Red Oak to finance the acquisition and renovation of a four-building, two-story apartment complex containing 33 units built in phases between 1977 and 1979, located in Alexandria, Kentucky. At the time of purchase, the property was 100% occupied but with below market rents. The Sponsor saw an opportunity to add value through targeted capital improvements, then raise rents and create value.
Solution
Red Oak Capital provided a fixed-rate bridge loan in the amount of $1,730,000,with an initial term of one-year, with two (2) extension options of six (6) months each. The financing will allow the borrower to upgrade the units with new countertops with undermount sinks, new stainless steel appliances, wood flooring, new cupboards and cabinets, and update the plumbing and light fixtures. Upon completion of the renovation, the subject was in excellent condition while maintaining 100% occupancy throughout the renovation process.
Considerations
Red Oak attracted to this opportunity given it’s location in a submarket of Campbell County Kentucky, which has a history of strong occupancy levels. The property was not subject to rent control, presenting an opportunity for rent increases. Additionally, the area has a highly educated and skilled workforce, a strong transportation network and the presence of multinational firms in nearby Cincinnati.
Exit
The borrower completed his business plan successfully and ahead of schedule and has paid off the Red Oak Loan.
This is the official website of Red Oak Capital Holdings. Due to a rise in imposters using names and logos of legitimate lenders, please be careful and confirm the legitimacy of those with whom you are doing business. You may contact the proper authorities such as the FTC, IRS or FBI, to report any suspicious activities. 12/22/2023
Copyright © 2023 Red Oak Capital Holdings. All rights reserved.
Privacy Policy Terms of Use
This is the official website of Red Oak Capital Holdings. Due to a rise in imposters using names and logos of legitimate lenders, please be careful and confirm the legitimacy of those with whom you are doing business. You may contact the proper authorities such as the FTC, IRS or FBI, to report any suspicious activities. 12/22/2023
Copyright © 2023 Red Oak Capital Holdings. All rights reserved.
Privacy Policy Terms of Use