Value-Add Multifamily Financing Strategies for Underperforming Apartments
Underperforming apartment complexes near transit hubs or secondary markets often struggle with dated amenities and low occupancy. Our value-add multifamily financing
strategies deliver tailored debt and equity solutions—like financing value-add apartment renovations near transit hubs
—packaged in a lender-ready format within 5–10 business days.
How to Structure Financing for Multifamily Repositioning Projects
Learning how to structure financing for multifamily repositioning
means aligning renovation budgets, rental growth assumptions and exit cap rates. We develop a three-statement financial model highlighting NOI upside, DSCR covenants and IRR projections, then layer in senior mortgages, mezzanine debt and sponsor equity to optimize your capital stack.
Value-Add Debt and Equity Solutions for Apartment Complexes
Our value-add debt and equity solutions for apartment complexes
combine short-term bridge loans to fund unit rehabs with permanent Fannie Mae or Freddie Mac financing. By structuring mezzanine notes or preferred equity, we ensure sponsors maintain control while unlocking additional leverage for larger-scale renovations.
Hospitality-Style Value-Add Financing for Multifamily Assets
Incorporating hospitality best practices—such as on-site amenity upgrades and service enhancements—our hospitality-style value-add financing for multifamily assets
targets higher rent premiums and occupancy boosts. We integrate amenity cost schedules and phased draw plans into your lender presentation to demonstrate cyclical resilience.
Key Components of Value-Add Multifamily Financing
- Renovation & Repositioning Budget:
Phased capex draws tied to contractor milestones.
- Three-Statement Financial Model:
Pro forma rents, expense growth, DSCR and IRR sensitivities.
- Capital Stack Design:
Senior debt, mezzanine financing, equity contributions and incentive waterfalls.
- Diligence Pack:
Appraisals, rent rolls, environmental and structural reports.
- Investor Presentation:
Customized deck with market comparables and value-add thesis.
Use Case: 120-Unit Transit-Adjacent Complex
A sponsor targeting a 120-unit garden-style complex near a major transit line sought a $2M renovation loan and $15M acquisition mortgage. We structured value-add multifamily financing
that facilitated amenity overhauls, elevator modernizations and unit upgrades—securing commitments from a life-company lender and mezzanine fund within 10 days.
Timeline & Pricing
Structuring Fee:
USD 15,000 flat—complete value-add financing deliverables in 5–10 business days.
Optional Distribution:
USD 58,500 flat—showcase your multifamily deal to our vetted network of lenders and equity partners.