Stabilization Bridge Loan & LP Equity - Major Market, TX
Transaction Details
- Project Type: 254-Unit Multifamily Stabilization
- Loan Amount: $28,000,000
- Term: 3+1+1
- Rate: SOFR + 320
- Structure: SOFR + 320, 3+1+1 Structure
- Location: Major Market, TX
- Arranged By: Adam Dreyfuss and Tomer Sheelo
Transaction Overview
FOCAL arranged a $28.0 million stabilization bridge loan together with a $10.5 million LP equity investment for a 254-unit multifamily property in a major Texas market, assembling approximately 98% of the total capital stack.
The property was still working through its remaining concession burn-off, requiring a lender willing to underwrite to the asset's path toward full stabilization rather than solely to in-place performance. FOCAL sourced a flexible capital partner and structured the debt at SOFR + 320 on a 3+1+1 term.
One week before closing, a co-guarantor unexpectedly withdrew from the transaction, putting the execution at risk. FOCAL worked with the lender to restructure the guaranty so the remaining sponsor could close independently despite having net worth below 50% of the loan amount and limited liquidity. In exchange, the lender accepted a nominal fee equal to 1% of the loan amount to compensate for the additional risk.
The revised structure preserved the financing, kept the transaction on schedule, and delivered a fully capitalized solution despite the eleventh-hour change to the sponsorship and guaranty structure.
About FOCAL Advisory
At FOCAL, we are dedicated to empowering our clients through comprehensive real estate advisory services tailored to meet the complexities of today's market. We specialize in market analysis, due diligence, asset management, transaction support, and innovative financing solutions, so that each investment decision is strategic, data-driven, and aligned with our clients' long-term goals.
Every real estate project carries its own unique financing requirements. Our tailored financing solutions provide flexible, efficient, and strategic funding options aligned with the specific needs of each investment - drawing on a broad spectrum of capital sources, from institutional funds and CMBS to agencies, local banks, and private money lenders, on transactions nationwide.
Contact the capital markets team - Adam Dreyfuss (DRE 02243085, adam@focalinvest.com) and Tomer Sheelo (DRE 02144916, tomer@focalinvest.com) · (310) 929-6959 · 150 S Rodeo Drive, Suite 100, Beverly Hills, CA 90212.
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