DLP Capital, a private real estate investment and financial services firm, announced that it has provided $24.4 million in acquisition financing for a new, 160-unit multifamily property in the greater Boise, Idaho metro area. DLP Capital moved extremely swiftly, closing the transaction with the borrower, Life Bridge Capital, within five days to prevent the borrower’s acquisition of the property from falling through. The borrower’s original lender had suddenly shuttered its commercial loan program amid current market turmoil, leaving millions of earnest money, i.e. deposit, at risk of being lost. The expedient underwriting and financing places the new community well on its way to providing quality, affordable apartments in a metro area that houses more than 42 percent of Idaho’s population. Boise is the state capital and the property, in Nampa, is part of the Boise Metropolitan Statistical Area.
“This was an incredibly attractive financing opportunity, with a well-established sponsor, and we worked at lightspeed to make it happen,” said Don Wenner, CEO of DLP Capital. “Given capital markets uncertainty, those with discretionary capital—such as DLP Capital—are likely to see more of these types of opportunities. Only the most agile lenders with solid resources can capitalize on these situations.”
Breckenridge Apartments is located on 18022 Gold Miner Lane in Nampa, which sits 20 miles west of Boise. The multifamily community was completed in October 2022 and is currently 65 percent occupied, with full lease-up expected quickly. The community consists of 160 garden-style apartments, situated on 10 acres, each with one to three bedrooms. The community also features a clubhouse with fitness center and kitchen facilities, a carport, and more.
The $24 million loan was in the form of 12-month bridge financing. Especially attractive to DLP Capital was the fact that the borrower already has take-out financing in place. At the same time, the DLP loan was very beneficial to the sponsor not only due to the earnest money at stake, but because the appraisal of the property shows a current value that is already at a 24 percent premium to the previously agreed-upon acquisition price. The purchase price of the acquisition was not disclosed. The loan also expands DLP Capital’s footprint, which now has assets under management in 30+ states.
Nampa is considered the gateway to Idaho’s burgeoning wine region and is an important part of the Union Pacific main line operations. Agriculture is also an important part of the local economy. The city of Nampa has been undergoing a revitalization, with grants for historic facades, streetscape beautification, and public investment.