$750,000 Acquisition in Moraga, CA
Acquisition Loan: $750,000 Multifamily Investment in Moraga, California
Loan Amount: $750,000
Loan Term: 12 Months
LTC: Under 50%
Lien Position: 1st Deed of Trust
Rubicon Mortgage Fund, LLC closed a $750,000 acquisition loan for the purchase of a six-unit apartment building in Moraga, California. The loan supported an experienced borrower acquiring a value-add multifamily property in a highly desirable location near Saint Mary’s College of California.
This transaction demonstrates how private acquisition loans can be an effective solution when traditional financing is not available and timing is critical
Overview of the Acquisition Loan
The loan was structured as an acquisition loan for investment purposes. The borrower acquired a six unit apartment building located on one of Moraga’s main streets, just steps from Saint Mary’s College. The area is considered a prime rental market due to its proximity to the college, walkability, and limited supply of multifamily housing.
The borrower has an established relationship with Rubicon Mortgage Fund, LLC and has successfully worked with the team on prior transactions. That relationship, combined with a clear business plan and strong market fundamentals, allowed the deal to move forward quickly.
Property and Location Highlights
The subject property is a six unit multifamily apartment building located in an AAA location within Moraga. Properties near Saint Mary’s College are consistently sought after due to strong rental demand from students, faculty, and long term residents.
Key highlights include:
- Six unit apartment building
- Located steps from Saint Mary’s College
- Situated on a main street in Moraga
- High demand rental area
- Significant upside through renovation and rent growth
At the time of acquisition, the property was vacant and in need of substantial upgrades. Due to the vacant condition and deferred maintenance, the borrower was unable to secure traditional bank financing.
Complex 1031 Exchange Structure
This transaction involved a complex 1031 exchange structure. The borrower successfully sold and relinquished three separate properties as part of the exchange in order to acquire this multifamily asset.
Executing multiple 1031 exchanges into a single acquisition requires precise coordination, strict timing, and a lender capable of moving quickly. Rubicon Mortgage Fund, LLC worked closely with the borrower to ensure the acquisition loan aligned with the exchange requirements and closing deadlines. The closing of the replacement property perfected the 1031 Exchange.
The ability to close efficiently was critical to preserving the tax deferred status of the exchange.
Value Add Strategy and Investment Plan
The borrower’s business plan is to renovate each unit and bring the property up to current market rents. With its location near Saint Mary’s College and limited competing inventory, the apartment building presents strong long-term upside.
The investment strategy is focused on expanding the borrower’s personal real estate portfolio, increasing passive income, and building generational wealth. This property is considered a long term hold and a trophy asset intended to remain within the family for generations.
Rubicon Mortgage Fund, LLC works with borrowers who are focused on portfolio growth and long term value creation, providing capital that supports those investment goals.
Why Private Financing Was the Right Fit
Because the apartment building was vacant and in a distressed condition, traditional lenders were not able to finance the acquisition. Private acquisition financing allowed the borrower to close without delays tied to stabilization or occupancy requirements.
The loan provided the flexibility needed to acquire the property, begin renovations, and execute the value add plan. Once the property is stabilized and operating at market rents, the borrower plans to refinance and buy out the short term financing.
Speed and Execution
This acquisition loan closed in under three weeks. The timeline reflects Rubicon Mortgage Fund, LLC’s ability to move quickly, work through complex structures, and execute under tight deadlines. The transaction required coordination, late nights, and a clear understanding of the borrower’s objectives.
Exit Strategy
The planned exit strategy is to refinance the property once renovations are complete and the building is stabilized. Improved occupancy and increased rental income are expected to support permanent financing that will replace the acquisition loan.
Acquisition Loans With Rubicon Mortgage Fund, LLC
This deal breakdown highlights how acquisition loans can unlock opportunities when traditional financing is not available. Rubicon Mortgage Fund, LLC specializes in acquisition loans and short term financing solutions for multifamily and investment properties throughout California.
By combining speed, experience, and flexibility, Rubicon Mortgage Fund, LLC helps borrowers grow their portfolios, increase passive income, and build long term value through strategic real estate investments.
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