CROWN POINT, IN—An investment firm, to exit bankruptcy, has gained $7.2 million to refinance a 174-unit apartment community here called Cypress Point Apartments.
Los Angeles-based Karlin Real Estate Lending provided the first mortgage loan to the unnamed borrower. Built in 1978 and most recently renovated in 2002, the six-building community features studio, one-, two- and three-bedroom apartments each with private balconies and patios. The 10.9-acre property also includes a clubhouse and swimming pool. The proceeds are being used to refinance three existing loans held by different lenders.
Larry Grantham, managing director at Karlin, said the property was recently appraised at approximately $58,000 per unit. “The underlying asset is a performing multifamily asset with stable in-place cash flow in a desirable high-income area within the Chicago Metro,” he said in a statement.“An improper lien was filed against the property by one of the junior lenders triggering a technical default. The borrower filed for bankruptcy protection only to stave off the lawsuit.We were able to step in with a short-term loan so that the experienced apartment investor could exit bankruptcy and payoff its existing lenders. The funding also provides them with enough time to find permanent financing and execute their business plan, which includes improving rent roll with the increase of existing below market rents.”