A $9.2 million loan to refinance a portfolio of three properties, including two in the Valley area, was recently announced. The three properties are a mid-construction 14-unit multifamily property in Toluca Lake; a 9,300-square-foot retail center in Melrose Hill; and a 141,166-square-foot lot of land that has been zoned for residential use Glendale.
iBorrow, a private direct commercial real estate lender based in Sawtelle, is behind the loan.
Brian Good, iBorrow’s chief executive, said the construction of the multifamily project is mostly complete, but the borrower needed more time to fully see the project through. The refinancing will enable the borrower to complete construction, which is expected to occur within a two-to-three-month timeframe.
The loan was structured with flexible payment provisions to enable the borrower to refinance it with permanent debt as soon as it becomes an option.
The Toluca Lake property is in an area with a submarket-level vacancy rate of 4.6% for multifamily properties, according to data from CoStar Group Inc.
Furthermore, the strip retail center located in Melrose Hill is 100% occupied and features regional freeway access. The final part of the portfolio sits on a hillside in a residential neighborhood in Glendale and has a primary expected use as a single-family residence.
Founded in 2013, iBorrow is a nationwide direct lender that provides short-term bridge financing to commercial and multifamily property owners on a non-recourse basis. A bridge loan fills the gap between a borrower’s immediate need for financing, often while they search out long term solutions. These loans are typically short-term or interim loans that are issued between a few months and two years, and span from $3 million to over $100 million across all product, property and deal types.