4508 Papania Street$7M ARV • 68 Units • New Orleans
Stabilized 68-unit acquisition with massive value-add upside through lease-up. Purchasing $2.5M below ARV with clear path to stabilization.
Strong loan-to-value ratio • Proven submarket • Experienced operator
Why This Deal Works for Lenders
Protected LTV
Lending at ~51.4% ARV provides substantial downside protection
Clear Exit Strategy
Stabilize & refinance into permanent financing or sell at stabilized value
Experienced Operator
5GK Properties has proven track record in value-add multifamily
The Value-Add Opportunity
Massive upside through aggressive lease-up of 43 vacant units at market rents
Purchase vs. ARV Comparison
Built-In Equity
$2.5M
Lease-Up Opportunity
Units to Stabilize
43 Units
New Orleans East submarket with proven rental demand. Property location provides access to major employment centers and transportation corridors.
Aggressive 12-18 month lease-up timeline with experienced on-site management team and comprehensive marketing strategy to achieve 95% stabilized occupancy.
$2.5M equity cushion provides substantial downside protection. Even at 50% occupancy, property value supports loan position based on market comps.
Deal Structure & Returns
Conservative underwriting with significant upside potential
Acquisition Metrics
Lender Position (Example)
Lender Safety: With $3.4M in equity cushion above the loan, lender is protected even if property value drops significantly during stabilization period.
Investment Highlights
For The Lender
- Conservative 51.4% LTV based on $7M ARV
- $3.4M equity cushion protecting loan position
- Experienced sponsor with proven track record
- Clear exit via refi or sale post-stabilization
- Hard asset with strong New Orleans fundamentals
For The Borrower
- Buying $2.5M below market value (ARV)
- 43 vacant units = immediate revenue upside
- Simple value-add: lease-up existing units
- 12-18 month stabilization timeline
- Strong exit with 2-3x equity multiple potential
Deal Documentation
Complete due diligence materials for underwriting review
Purchase and Sale Agreement
Executed PSA dated October 25, 2025
Rent Roll Detail
Current rent roll as of June 3, 2025
Ready to Fund This Deal?
Conservative LTV, strong equity cushion, and experienced operator make this an attractive lending opportunity
© 2025 - 5GK PROPERTIES LLC | 4508 Papania Street Lending Opportunity