Paul Natalizio of Cornerstone Realty Consultants LLC worked with Bilotti-Matula Real Estate LLC to arrange acquisition financing for the Continental and Riviera apartments. Along with the Continental and Riviera buildings which rest on 1.75 acres and combine for 71 units there was also a 2 family rental house situated on the property included in the transaction. While most of the units are one-bedroom apartments there are 4 two bedroom units and 3 studio units. Originally the land was used for agriculture with the still existing 2 family building having been built in 1700 and served as the farmhouse. The larger apartment buildings were built in 1971 and 1972.
Though the property had tremendous upside given the below market rents and location, the loan was being processed during the recent market upheaval. Cornerstone met the challenge of securing a 10 year fixed rate loan at 5.73%, a loan to purchase price of over 75% and a going in debt service coverage of 1.00. In addition, Cornerstone also arranged 2 years of interest only payments. Cornerstone was able to lock such favorable terms and rate, despite the tightening of the credit markets and spreads going up significantly as a result of its relationship with the lender who agreed to maintain their initial loan spread until closing.
The property will be managed by The Bilotti Group, Inc., the principals of which have owned/managed northern RI residential investment properties for over 20 years.