A Cambridge condo conversion play - investor was buying a 6-unit building near Inman Square at $2.4M to convert and sell as individual units. Permits already in hand from the prior owner.
LOAN AMOUNT
$1,680,000
Conventional bank declined the deal because of the planned conversion (banks underwrite the as-is rental, not the unit-by-unit retail value). Needed bridge capital to close, then sell off three units to retire the bridge before converting the rest.
Adler Capital structured a $1,680,000 bridge loan at 70% LTV with 18-month term and no prepayment penalty. Investor closed in 11 days. Three of the six units were under contract within 90 days at retail pricing.
The Outcome
Three units sold in the first 90 days at an average $725K each - bridge fully retired. Investor kept the remaining three units as long-term rentals, refinanced into a portfolio DSCR loan at 6.0%.
Deal Highlights
LOAN AMOUNT
$1,680,000
PURCHASE PRICE
$2,400,000
LTV
70%
TERM
18 Months
PREPAY PENALTY
None
CLOSING TIME
11 Days
More Deals
See how Adler Capital has structured financing across property types, markets, and deal sizes.
Dated 1960s ranch property on an oversized corner lot in College Park near downtown Orlando.
A South Florida investor identified a fully occupied 4-unit in Hialeah - all 2/1 units, long-term tenants, $6,800/month gross rent. Purchase: $620,000. Cap rate coming in at 5.8% with upside on turnover.
Investor bought a waterfront estate for $1.8M in cash to win a fierce bidding war, then needed to pull cash back out immediately.
