Confidential · For intended recipients only
Day-1 advance of $1,033,805 retires the existing loan in a cash-neutral refi; an $884K construction holdback completes the project; a financed $334K interest reserve carries debt service through construction and into lease-up. SOFR + 4.50% (8.14% all-in), 24 months + two 6-month extensions, full recourse.
| Loan terms | Detail |
|---|---|
| Loan amount | $2,251,733 |
| Type / purpose | Senior bridge, first mortgage — recap + completion |
| Rate | SOFR + 4.50% · 8.14% all-in · 3.50% floor |
| Term | 24 mo + (2) 6-mo ext @ 50 bps |
| Amortization | Interest only |
| Recourse | Full — Eric Armstrong, guarantor |
| Targeted close | ASAP |
| Day-1 structure | Amount |
|---|---|
| Day-1 advance (payoff) | $1,033,805 |
| Construction holdback | $884,103 |
| Interest reserve (financed, ~22 mo) | $333,825 |
| Total commitment | $2,251,733 |
| Sponsor basis contributed to date | $1,923,063 |
Sized at 80% LTC against $2,814,666 of total project cost. The constraint stack below shows the maximum loan each test would allow — the request sits at the most conservative one.
Directly across from the announced Ritz-Carlton (2028); adjacent to the Kimpton's full renovation (late 2026); two blocks from Gainbridge Fieldhouse.
A 12-year national tenant on a freshly executed 5-year renewal — $7,048/mo stepping to $7,261/mo in year three. Income from close.
Contributed basis to date plus full personal recourse — 20 years of experience, 38 units owned/managed, $6.94MM net worth.
Stabilized NOI of $238,631 supports a $2.56MM bank perm at 75% LTV, 1.30x DSCR, 10.6% debt yield — surplus over the bridge balance.
The gut renovation is already underway. Day-1 proceeds are cash-neutral; the holdback finishes what's started.
80% LTC binds beneath every other cap — LTV, DSCR, and debt yield all carry meaningful cushion at $469K/unit total cost.
The $333,825 financed reserve covers ~22 months against a 24-month base term; sponsor wears ~$33K of carry plus any extension-period interest.
$182K current liquidity plus $150K approaching and $6.94MM net worth; $84,576 of in-place retail income offsets carry; NOI begins covering debt service by month 18 of the lease-up model.
$2.81MM total cost and a single commercial tenant representing 100% of current revenue.
The retail tenant is a 12-year operator on a fresh 5-year renewal with a contractual year-3 step-up; five residential units diversify income at a $3,200–$5,000/mo band consistent with downtown comps.
Residential units carry no in-place rent; stabilized NOI requires successful lease-up.
The model assumes 12 months of lease-up after 24 months of construction — and the term structure provides up to 36 months of runway. Ritz-Carlton, Kimpton, and Gainbridge anchor the demand profile.
Yield on cost during construction runs below the all-in coupon — standard for value-add bridges, disclosed explicitly.
The financed interest reserve absorbs the gap by design; at stabilization the 8.5% yield on cost clears the 8.14% all-in rate with a 1.30x perm DSCR behind it.
| Asset profile | Detail |
|---|---|
| Type | Mixed-use mid-rise — 5 resi + 1 retail |
| Built / renovated | 1950 / 1977 · gut renovation in progress |
| Net rentable | 14,126 SF |
| Cost per unit | $469,111 |
| Retail tenant | Big Red — 12-yr tenant, 5-yr renewal |
| Retail rent | $7,048/mo → $7,261/mo (yr 3) |
| Stabilized resi rents | $3,200 – $5,000/mo |
| Property manager | Circle City Property Management |
The pro forma is honest about the shape of a recap: negative NOI in place, breakeven through year one, $238,631 at stabilization.
| Line item | In-Place |
|---|---|
| Gross potential rent | $84,579 |
| Less: vacancy & credit loss | ($70,488) |
| Other income | $13,767 |
| Effective gross income | $27,858 |
| Operating expenses | ($50,546) |
| Net operating income | ($22,687) |
Alternative exit: sale at $3,409,013 (7.0% cap) nets $3,255,608 after commissions and costs against a $2,251,733 bridge balance. All figures from the goKaizen underwriting model — full model with deal-room access.
Track record includes a 10-unit luxury multifamily renovation at 4923 Kessler Blvd, Indianapolis — $660K purchase, $2.3MM renovation, $4.25MM as-is value. Development team: licensed GC New Hinges & Alive Enterprises; architect ARX 360. Full REO and track record available in the deal room.
The sponsor is seeking a lender able to execute a $2.25MM full-recourse recap at SOFR + 4.50% — cash-neutral day one, sized at the binding LTC cap, with a defined perm takeout. Targeted close: ASAP.
