Red Oak provided $1,200,000 for the purchase and rehabilitation of a 40-unit, 43,760-square-foot multifamily property located in Houma, LA, near New Orleans. The buyer was an experienced multifamily property owner and redeveloper who currently owns/operates approximately 60 other units in 14 properties, with over 16 years’ experience.
Located in commercial traffic area with other multifamily in close proximity, the high visibility asset is surrounded by complimentary properties. The buyer negotiated a reduced purchase for the property, which was only 33% leased at time of sale. Due to the deferred maintenance and low lease levels, the property was not eligible for conventional financing. The property at 3594 Friendswood Dr., stands to benefit by brining rents up to market rates, following acquisition, repair and renovation of all the units to market specifications.
The exit strategy is for the borrower to obtain conventional financing after the rehabilitation and stabilization is completed, in approximately 6-7 months.