Garden Apartment Complex Refi and Rehab in Memphis – Tranche IV
This is a prefunded opportunity for a Multi-Family Residential property in Tennessee. The subject property address is 2459 Ketchum Rd, Memphis, Tennessee.
The borrower is requesting a loan of $3,650,000 in order to refinance and renovate the underlying property. Renovation needed for the underlying property totals $900,000. This includes replacing appliances, electrical, plumbing, exterior maintenance, and general repair maintenance on 93 of the units. This also includes general maintenance of common areas such as parking lots and stairs. The borrower will receive 4 draw(s) totaling $3,650,000 over the course of the loan.The initial draw in the amount of $3,050,000 is disbursed at closing to pay down the existing debt, pay for closing costs, and complete renovations on the first 25 units. The second draw of $300,000 will be disbursed after the verified completion of a minimum of 25 units. The third draw of $250,000 will be disbursed after the verified completion of a minimum of 30 units. The fourth draw of $50,000 will be disbursed after the verified completion of all units completely renovated and verified by a third party vendor. $79,083 (approx. 2 months) in interest reserves will be held by Patch of Land. The borrower plans to refinance in less than one year.
2459 Ketchum Rd
- As-Is Value: $3,590,000
- Renovation: $900,000
- After-Rehab Value: $5,030,000
An independent third party appraisal commissioned by Patch of Land, shows an After Repair Value (ARV) of $5,030,000 for 2459 Ketchum Rd. The ARV ratio is 72.6% and is in line with the data we found during our due diligence process. Our research shows the residential market surrounding the underlying property in this area of Memphis is stable and supply and demand are in balance.
2459 Ketchum Rd was built in 1965, located in the metropolitan neighborhood of Memphis, Tennessee. The property consists of 334 primarily 1 and 2 bedroom units in 46 buildings totaling 817,839 sq. ft. on 18.73 acre lot. The property is near Memphis International Airport, major throughways, public amenities, shopping and recreation.
Renovation
2459 Ketchum Rd
Borrower will renovate 93 units, with the average cost per unit being $8,961. See attached renovation budget for details.
This is a prefunded opportunity for a Multi-Family Residential property in Tennessee. The subject property address is 2459 Ketchum Rd, Memphis, Tennessee.
See Campaign: https://patchofland.com/investments/memphis-multifamily-tranche-iv.html
Contact Information:
2459 Ketchum Rd, Memphis, Tennessee.
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Source: ICNW