Cronheim Mortgage has secured 75% LTC financing for the acquisition of The California Building in downtown New Orleans, LA. Originally an office building, the property had been converted to Class A multifamily. Currently, the units were leased as a combination of both multifamily and short-term rentals due to the building’s unique advantage of holding a hotel license. The property is located adjacent to the French Quarter, Superdome and Tulane Medical Center providing an ideal location for both residents and visitors.
The Sponsor, Servio Capital, plans to convert the building to condos and sell units to both short term rental investors and owner occupants. The building’s unique ability to operate entirely as short-term rentals makes it an ideal investment for those who want to enjoy part-time use of the units while also earning a return by renting out their unit when not in use.
David Turley, Chief Operating Officer of Cronheim Mortgage, noted: “Capital markets have changed dramatically in recent months. A comprehensive marketing effort for debt is more important than ever, not only to ensure the best terms but also to create multiple options. We saw that pay off here when the initial lender ultimately could not get comfortable with the business plan and we were able to quickly pivot to another option without putting the Sponsor’s hard deposit at risk.”