Red Oak Financial has funded a $5,459,000 fixed-rate bridge loan for the purchase of Deer Creek Apartments, a 111-unit multifamily complex in Topeka, KS. The loan will allow the sponsor to expand the property into a 153-unit community, through both renovation and expansion of two buildings and construction of a brand new eight-unit building.
Red Oak’s Gary Bechtel said, “Real estate fundamentals of the market indicate capital allocations into Topeka are both sound and strategic. Red Oak was drawn to this opportunity based on the experienced sponsor’s track record for revitalizing value-add properties, along with its portfolio of high performing assets and balance sheet.”
The property is situated in a burgeoning area east of the capital of Kansas. The location near a metropolitan market provides high visibility and complementary properties, and is bolstered by the stable existing operational history of a 100%-leased asset.