Red Oak Capital Holdings, LLC provided a $4-million bridge loan for the Bon Air Apartments, a multifamily complex in Indianapolis, Indiana. The funds will be used to pay off an existing loan and complete the renovation of the downtown property. The interest-only, non-recourse debt, provided under the firm’s Opportunistic Bridge Loan Program, carries an 11.50% note rate, 54.40% LTSV, and a two-year term with two 6-month extension options.

Located within a Qualified Opportunity Zone, Bon Air consists of three 3-story buildings housing 42 units that are being turned into luxury apartments. The deal also involves an adjacent parcel on which the sponsor, 21 West QOZ, LLC, will build a fourth, larger building, along with common area and amenity spaces connecting all 4 structures. The borrower intends to exit the Red Oak loan via the financing tied to the final building's development. The asset is situated just two blocks from the Indiana University’s Methodist Medical Center, which is undergoing a $1.6-billion expansion program.