SOUTHPORT, Conn., Feb. 22, 2011 /PRNewswire/ -- Edgewood Capital (www.edgewoodcapital.com) recently originated a $3,900,000 first mortgage bridge loan secured by a 200-unit apartment complex located in Austell, Georgia, a western suburb of Atlanta. Edgewood's two year loan provides 70% of the total capitalization including property acquisition, capital improvements, interest carry and transaction costs. The financing enabled the borrower to purchase the non-performing note on the property at a significant discount to outstanding balance. Title was obtained through a deed-in-lieu-of foreclosure agreement with the previous owner.
Built in 1989 and renovated in 1997, Hunter's Grove Apartments consists of ten two- and three-story buildings plus a clubhouse situated on 16.53 acres. The borrower intends to improve performance at the property through active on-site property management and the implementation of a $2.0 million renovation program. Hunter's Grove Apartments is the fourth residential complex acquired by the borrower in the past fourteen months and the second financed by Edgewood Capital.
Edgewood's note finance and bridge lending program helps borrowers and investors take advantage of the current discounts available in the marketplace. According to Jonathan Levirne, a Managing Director at Edgewood, "Our bridge loan is the perfect financing solution for borrowers seeking to acquire non-performing loans or non-stabilized properties in need of re-tenanting and significant capital improvements which conventional sources will not finance. In many situations, it is less costly for investors to borrow bridge debt than to use all equity to complete the capital stack."
About Edgewood Capital
Formed in 2002, Edgewood Capital is a real estate private equity firm specializing in bridge lending, loan acquisitions and value-add real estate investments. Edgewood is currently investing capital through its fourth fund which is geared towards distressed debt and REO financing. The firm is targeting $200 million of originations in 2011.
SOURCE Edgewood Capital