- Loan Amount: $5.459 Million
- Loan Type: Fixed-Rate Bridge Loan
- Loan Term: 12 Months
- Property Type: Multifamily
Topeka, Kansas (November 16, 2020) – Red Oak Financial, a Michigan-based commercial real estate finance company, 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 property at 441 S.E. Winfield Ave., 430 S.E. Winfield Ave., and 426 S.E. Arter Ave. sits two miles from downtown Topeka.
The loan will allow the sponsor to expand the property into a 153-unit community, through the renovation and expansion of two buildings, as well as construction of a brand new eight-unit building. The revitalization and expansion is expected to be completed by Fall 2021.
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.”
Proceeds for the financing will allow the updates and renovations of Deer Creek Apartments to move ahead, as well as building the additional units. The property is situated in a burgeoning area east of the capital of Kansas. The location near a metropolitan market provides high visibility, complimentary properties, and is bolstered by the stable existing operational history of a 100%-leased asset.