Case Study: How a 24-Unit Multifamily Repositioning in Newark Closed in 19 Days at 75% LTV

The opportunity showed up on a Thursday afternoon. A 24-unit walk-up in Newark's Ironbound district, listed at $2.1 million after sitting vacant for nine months. The seller was a tired landlord with deferred maintenance and below-market rents on the occupied units. Our borrower — a seasoned operator with 200+ units across northern New Jersey — saw what the market had not yet priced in.

The thesis was simple: renovate the units, push rents to market ($1,450/unit from the existing $875 average), stabilize at 90%+ occupancy, and refinance into permanent debt within 18 months.

Why Traditional Lending Fell Short

The borrower's first call was to a conventional lender. The answer was predictable: 65% LTV on the as-is appraised value of $2.4M, which would have meant a $1.56M loan — barely enough to close on the purchase, let alone fund $1.8M in renovations. The deal math simply did not work with as-is underwriting.

This is the structural gap that kills value-add multifamily deals before they start. Lenders fixated on current condition miss the entire investment thesis. As-is value is a snapshot of yesterday. After-repair value is the business plan.

How We Structured It

Riverside Park Capital underwrote this deal the way it should be underwritten — to the after-repair value. The independent appraisal came back at $6.4M ARV based on renovated comps in the submarket. We structured a $4.8M bridge loan at 75% of ARV:

• $2.1M acquisition tranche — funded at closing
• $1.8M renovation holdback — disbursed against completed draws
• $900K reserve for carry costs, lease-up, and contingencies

Interest-only payments. 24-month term with one 6-month extension. No prepayment penalty after month 12. The borrower closed in 19 days from signed term sheet to funding.

Why ARV Underwriting Changes Everything

When a lender underwrites to ARV instead of as-is value, the entire capital stack opens up. The borrower in this deal came in with $1.6M of equity — real skin in the game — but was able to execute a $1.8M renovation scope without raising additional capital or bringing in partners. The loan covered the business plan, not just the purchase.

This is what institutional bridge lending looks like. Not a bank loan with a different name. A purpose-built tool designed for operators who create value through execution.

The Result

Fourteen months after closing, the property was 92% occupied with an average rent of $1,425/unit. The borrower refinanced into a DSCR permanent loan at a 5.8 cap — locking in approximately $2.8M in created equity. Total project cost: $3.9M. Stabilized value: $6.1M. That is a 56% return on invested capital in just over a year.

What I'm watching next:

• Bridge-to-perm execution timelines are compressing as rate volatility declines — 12-month business plans are becoming viable again
• Newark and Jersey City submarket rent growth continues to outpace Manhattan, creating ARV spreads that favor value-add operators
• Sponsors who can close in under 21 days are winning off-market deals at 15-20% discounts to listed pricing