$2.2M Purchase Bridge: 10-Unit Value-Add Multifamily
San Diego, CA — An experienced investor put a 10-unit North Park apartment building under contract at $3,010,000, below its as-is valuation, with rents well under market. A bank would have stalled on unstabilized income; a $2.2M bridge loan closed the purchase in a day and gave the borrower 18 months to renovate, raise rents, and refinance into conventional debt.
The Borrower's Problem
The opportunity was a classic value-add: eight 1BR/1BA and two 2BR/2BA units built in 1970, in one of San Diego's strongest rental submarkets, priced at $3,010,000 against a broker's opinion of value of $3,400,000–$3,500,000. The catch was the income. In-place rents of $12,800 per month produced roughly $64,900 of annual NOI — nowhere near what a conventional lender needs to underwrite debt coverage on a $2.2M loan.
Buying below value only works if you can actually close. A bank process built around stabilized cash flow would have taken months and likely ended in a decline, and the seller was not waiting.
The Helvetica Solution
The loan was underwritten on the collateral, the business plan, and the borrower's track record rather than trailing NOI: a $2,200,000 first mortgage — 73% of purchase price and under 65% of as-is value — interest-only over an 18-month term. Funding followed the purchase by a single day.
The structure deliberately left room for the plan. The borrower funded the unit renovations out of pocket, so every dollar of loan proceeds went to acquiring the asset, and the 18-month runway matched the time needed to turn units, push rents to market, and document the new income for a bank takeout.
Benefit to the Borrower
- Closed on an under-market purchase at speed, on the seller's timeline
- Approved despite unstabilized in-place income a bank would decline
- Full acquisition proceeds preserved — renovation funded separately
- Interest-only payments kept carry low during the reposition
- 18-month runway to a proforma NOI of roughly $205,500 and an estimated $3,750,000 value
- Clear exit into conventional financing at about 59% LTV once stabilized
Deal Highlights
- First mortgage at 64.7% of a $3,400,000 as-is valuation
- 10 units, 10,184 SF, built 1970, with garages and off-street parking
- North Park location: Walk Score 93, Bike Score 72, Opportunity Zone
- Renovate, raise rents, refinance exit strategy
- Experienced repeat borrower with strong credit and substantial net worth
Buying a value-add property a bank won't underwrite?
Helvetica funds purchase and bridge loans from $300K–$10M+ on investment and business-purpose real estate, typically closing in 3–10 days following receipt of all requested documentation.
