ValueXpress closed on a $2,085,000 first-mortgage loan commitment secured by a 68-unit garden-style apartment community located in the southeastern portion of Alabama. The property was built in 1978 and renovated in 2005-2006. Renovations, which totaled $270,000, included upgrades to the pool, clubhouse, exterior and interior of the residential buildings. The improvements consist of 16 two-story buildings (plus a leasing office) situated on an 18.55-acre lot. The unit mix is 12 1-bedroom/1-bath units (578 square feet), 36 two-bedroom/1-bath units (925 square feet) and 20 two-bedroom/1.5-bath units (1,024 square feet). The buildings feature brick veneer, vinyl or wood clapboard siding with pitched built-up roofs, some of which are mansard. Unit amenities include central air-conditioning and dishwashers. Project amenities include a pool and a clubhouse/leasing office. At closing, the property was 97% occupied.
The property is owned by a local multi-family investor who purchased the property in 2005 for $1,950,000 including transaction costs. The loan refinanced a 5-year recourse loan held by a regional bank and allowed the borrower to recoup cash invested to complete the renovation. The loan provides for a 10-year term with a 30-year amortization schedule and is non-recourse.