Lending Continues Even in Challenging Financial Climate

A bridge loan will fund the lease-up and stabilization of Scotia Apartments, a 55-unit property.

SAN JOSE—Even during the highly challenging COVID-induced financing climate, lending continues to be available. A couple of examples recently occurred in the Bay Area and across southwestern cities.

In the largest transaction, Highland Realty Capital procured a $22 million construction take-out bridge loan to fund the lease-up and stabilization of Scotia Apartments, a 55-unit multifamily property in San Jose. The non-recourse debt facility was sized to a sub-7% proforma stabilized debt yield, approximately 88% loan to costs on actual costs. It funded less than two weeks after receiving the certificate of occupancy issued by the city building department.