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Follow on Google News | Investor Exits Bankruptcy on MF Property with $7.25 Million Loan from Karlin Real Estate LendingThe senior credit facility is secured by Cypress Pointe Apartments. Built in 1978 and most recently renovated in 2002, the six-building community features studio, one-, two- and three-bedroom apartments each with private balconies and patios. The 10.9-acre property also includes a clubhouse and swimming pool. The proceeds are being used to refinance three existing loans held by different lenders. “The underlying asset is a performing multifamily asset with stable in-place cash flow in a desirable high-income area within the Chicago Metro,” said Larry Grantham, Managing Director of Karlin Real Estate Lending. “An improper lien was filed against the property by one of the junior lenders triggering a technical default. The borrower filed for bankruptcy protection only to stave off the lawsuit. We were able to step in with a short-term loan so that the experienced apartment investor could exit bankruptcy and payoff its existing lenders. The funding also provides them with enough time to find permanent financing and execute their business plan, which includes improving rent roll with the increase of existing below market rents.” According to Grantham, Karlin’s financing of $41,000 per unit is well below the market value of the property, which was recently appraised at approximately $58,000 per unit. About Karlin Real Estate Lending Karlin Real Estate Lending (http://www.karlinre.com/ End
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