Red Oak Capital Provides Bridge Loan for Dallas Apartment Upgrade

Red Oak Capital Holdings has provided a $2.3-million bridge loan to the owner of the Templecliff Apartments in Southeast Dallas. Jernigan Capital will use the funds to retire an existing mortgage and implement a capital improvement program on the 26 units to increase the property’s value and appeal to prospective buyers.

Red Oak’s Gary Bechtel added, “This transaction is yet another example of the broader challenges that investors are facing in today’s tight financing climate. Having acquired the property two years ago, the borrower needed additional funds to complete planned upgrades before putting the asset up for sale or securing permanent financing.”

Red Oak’s $2.3-million bridge loan was structured with a note rate of 10.00% and a 12-month term with two six-month renewal options. The debt represents 71.65% of the asset’s “As-Is” valuation of $3.21 million and 62.84% of its “As-Stabilized” LTV of $3.66 million.