New York, NY — Lument has announced the closing of a $29.4 million proprietary bridge loan to fund the acquisition and renovation of Limestone Oaks Apartments and Townhomes, a 401-unit multifamily community in San Antonio, Texas. Colin Cross, managing director, and John Sloot, associate director, led the transaction for Lument. The transaction was brought to Lument by John Brickson, director at Old Capital.
Limestone Oaks Apartments and Townhomes was originally constructed in 1981, last renovated in 2007, and acquired by the seller in 2013. The community has enjoyed strong occupancy over the years, averaging approximately 92% over the past decade.
The sponsor completing the acquisition is DJE Texas Management Group, a San Antonio-based multifamily owner and operator that has successfully completed over 200 renovation projects and has a portfolio of over 2,000 units.
“The bridge loan placement provides the time and funds needed to complete renovations, which will result in market rents and a fully-stabilized property that reaches its full market potential,” said Cross and Sloot.
“This is the third bridge loan I’ve closed with Lument in 2021, and once again they delivered exceptional results in a timely manner,” said John Brickson of Old Capital. “Lument’s bridge loan was an excellent solution for this value-add acquisition, as it carries a short-term, interest-only execution at a competitive interest rate. My clients have also been very pleased with Lument’s servicing post-closing.”
In addition to financing the acquisition, the closing provides over $3 million for immediate capital improvements to the community. Unit upgrades include installation of vinyl plank flooring, resurfaced countertops and improved kitchens, upgraded vanities and resurfaced bathrooms, and upgraded lighting fixtures. Common area improvements include new paint, a full renovation of the clubhouse and leasing office, upgrading all three swimming pools on the property, and landscaping improvements throughout the community.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Securities, Investment Banking and Advisory Services provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.