Investment Type: First Mortgage
Loan Amount: $45,750,000
Location: Fairless Hills, Pennsylvania
Property Type: Multifamily
Closing Date: March 16, 2023
Shem Creek financed the acquisition of Lakeview Terrace with a three-year bridge loan. The loan proceeds facilitated the purchase and renovation of the 288-unit, garden-style, multifamily property in the established submarket of Lower Bucks County, Pennsylvania.
This submarket had experienced tremendous job and wage growth, generating an acute need for affordable workforce housing. Average in-place rents were below market due to the property’s outdated units and the seller’s focus on occupancy, creating substantial and easily achievable cash-flow upside.
The sponsor renovated unit interiors to a much higher level of finish, which was complemented by common area and exterior improvements. The resulting materially higher rents added considerable value to the asset.
