LOS ANGELES — iBorrow, a private direct lender for commercial real estate, has provided a $3.5 million loan for a multi-family residential development on approximately 40 acres of land, located at 301 Walkertown Ave in Winston-Salem, North Carolina (the “Property”). The purpose of the loan is to refinance an existing $2.95 million loan, as well as to fund certain upgrades.
The Property encompasses a total of 347 apartment units, 257 of which are currently operational, with another 90 offline and in need of refurbishing. Once fully renovated, the borrower expects the Property’s net operating income to grow significantly.
Winston-Salem is home to Wake Forest University, which is a substantial local employer. Also, heavy industries such as BB&T, Hanes, Lowes Foods, and Reynolds American, are headquartered in the surrounding area. The Winston-Salem central business district has seen an uptick in new development; however the newer projects have targeted the higher rental rate tenant. The Property is geared to the lower end rental market targeting workforce/middle income/student housing, which is limited in area supply.
“This deal was challenging due to the borrower’s tight deadline, as their pre-existing loan was due December 29,” said iBorrow CEO Brian Good. “Winston-Salem is a relatively stable market and is home to Wake Forest University, which along with its renowned medical center is a substantial employer. We believe that this property will fill a needed niche in providing options for middle-income workers and university students.”