Red Oak Capital Holdings has provided a $2.3-million bridge loan to the owner of the Templecliff Apartments in Southeast Dallas. Jernigan Capital will use these funds to retire an existing mortgage and implement a capital improvement program on the 26 units, with the goal of increasing its value and appeal for prospective buyers.
Gary Bechtel from Red Oak commented, “This transaction is indicative of broader challenges investors are facing in today’s tight financing climate. The borrower acquired this property two years ago and needed additional funds to complete planned upgrades before putting it up for sale or securing permanent financing.”
The debt was structured with a note rate of 10%, 12-month term plus two six-month renewal options; representing 71.65% As-Is valuation ($3.21 million) or 62.84% As Stabilized LTV ($3
