Search
 

Avant Closes $5M Bridge Distressed Multifamily

OKLAHOMA CITY-The borrower's experience bringing back similar properties in the same neighborhood helps seal deal.

By John McCloud | Updated on March 20, 2009

OKLAHOMA CITY-A local investor’s experience and existing presence in the immediate market helped New York City-based commercial mortgage bank Avant Capital Partners close a bridge loan of approximately $4.58 million for the acquisition and renovation of Lakewood Apartments, a 209-unit complex at 7806 Lyrewood Ln. The managing partner of property owner Lakewood Estates Apartment LLC has three other properties in the immediate neighborhood.

According to Avant managing principal Adam Luysterborghs, the Class B property was only 40% occupied at the time of acquisition, but its location in a desirable submarket presented the sponsors with an opportunity to turn around an underperforming asset with substantial upside. He describes the sponsors as experienced multifamily investors with a strong operational presence in the local marketplace. “He had a management team and work crew almost on site already,” the Avant exec tells GlobeSt.com. “He’s very familiar with the kind of tenant that lives in the area, which made us very comfortable with the transaction.”

Lakewood Estates bought the property for $5 million and budgeted an additional $1.5 million for improvements. The fact the owner had successfully rehabbed and leased up two similar properties in the neighborhood was instrumental in persuading Avant to get involved. “For someone else to do the same deal, they would have higher costs,” says Luysterborghs. “He had boots on the ground to do the work and rehab the property. He knew what he was doing.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.