9-Unit Apartment Building

1892 Capital Partners provided a $1,185,752 bridge loan secured by a 9-unit apartment building located in a residential neighborhood in Tacoma, Washington.

The property had recently undergone renovations, including updated interiors, exterior improvements, and modernized building systems, positioning it as a strong candidate for long-term multifamily performance.

This financing was structured as a bridge-to-refinance loan, designed to support the borrower through the final phase of lease-up and stabilization.

The Opportunity

The subject property represents a value-add multifamily investment transitioning into a stabilized asset.

With renovations largely complete, the remaining opportunity centered on:

• Leasing units to stabilized occupancy
• Optimizing rental income
• Establishing consistent operating performance

Even with strong in-place improvements, traditional lenders often require stabilized occupancy and trailing financials before providing permanent financing.

The Financing Solution

1892 Capital Partners structured a 12-month bridge loan at 65% loan-to-value (LTV), providing the borrower with the time and flexibility needed to complete the business plan.

The structure provided:

• Capital to support the stabilization period
• Time to complete lease-up and increase occupancy
• Flexibility to optimize rents and cash flow
• A clear path toward refinance into permanent debt

Rather than relying solely on trailing performance, underwriting focused on the quality of renovations and projected stabilized income.

Why Bridge Financing Made Sense

For renovated multifamily assets, there is often a gap between project completion and stabilized performance.

Even well-executed properties can face challenges when:

• Lease-up is still in progress
• Income has not yet fully stabilized
• Conventional lenders require historical financials

A bridge loan allows borrowers to capture the value created through renovations before locking in long-term financing.

Execution & Outcome

1892 Capital Partners successfully closed this bridge-to-refinance loan, leveraging familiarity with the Tacoma market and experience in value-add multifamily underwriting.

The borrower is now positioned to:

• Stabilize occupancy across all units
• Increase net operating income
• Refinance into permanent financing at improved terms

This transaction reflects 1892’s approach to lending: supporting real business plans, understanding local markets, and providing capital that aligns with execution timelines.

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